Comparing Rockwell Automation (NYSE:ROK) & Hayward (NYSE:HAYW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hayward	13.51%	11.27%	5.59%
Rockwell Automation	11.56%	34.92%	11.53%

Analyst Recommendations

This is a breakdown of current recommendations for Hayward and Rockwell Automation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	1	3	1	3.00
Rockwell Automation	0	11	9	2	2.59

Hayward currently has a consensus target price of $19.25, suggesting a potential upside of 37.90%. Rockwell Automation has a consensus target price of $418.33, suggesting a potential upside of 15.90%. Given Hayward’s stronger consensus rating and higher probable upside, research analysts clearly believe Hayward is more favorable than Rockwell Automation.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.12 billion	2.70	$151.57 million	$0.68	20.53
Rockwell Automation	$8.34 billion	4.86	$869.00 million	$8.74	41.30

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

Volatility and Risk

Hayward has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Insider and Institutional Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. 5.1% of Hayward shares are owned by company insiders. Comparatively, 0.8% of Rockwell Automation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Rockwell Automation beats Hayward on 11 of the 15 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

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.