Head to Head Analysis: Rockwell Automation (NYSE:ROK) vs. Bel Fuse (NASDAQ:BELFB)

Rockwell Automation (NYSE:ROK) and Bel Fuse (NASDAQ:BELFB) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Rockwell Automation pays an annual dividend of $5.24 per share and has a dividend yield of 1.5%. Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 0.2%. Rockwell Automation pays out 61.5% of its earnings in the form of a dividend. Bel Fuse pays out 6.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rockwell Automation has increased its dividend for 15 consecutive years. Rockwell Automation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Rockwell Automation and Bel Fuse”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.26 billion	4.72	$952.50 million	$8.52	40.75
Bel Fuse	$534.79 million	3.46	$40.96 million	$4.08	35.81

Rockwell Automation has higher revenue and earnings than Bel Fuse. Bel Fuse is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rockwell Automation and Bel Fuse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	12.03%	30.14%	9.83%
Bel Fuse	8.59%	14.12%	6.22%

Insider and Institutional Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. Comparatively, 58.4% of Bel Fuse shares are owned by institutional investors. 0.7% of Rockwell Automation shares are owned by company insiders. Comparatively, 5.4% of Bel Fuse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Rockwell Automation has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Rockwell Automation and Bel Fuse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	1	5	12	1	2.68
Bel Fuse	0	0	6	1	3.14

Rockwell Automation currently has a consensus price target of $347.94, indicating a potential upside of 0.22%. Bel Fuse has a consensus price target of $138.40, indicating a potential downside of 5.28%. Given Rockwell Automation’s higher probable upside, equities research analysts plainly believe Rockwell Automation is more favorable than Bel Fuse.

Summary

Rockwell Automation beats Bel Fuse on 13 of the 17 factors compared between the two stocks.

About Rockwell Automation

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.