Critical Review: The Coretec Group (OTCMKTS:CRTG) vs. Rockwell Automation (NYSE:ROK)

Rockwell Automation (NYSE:ROK) and The Coretec Group (OTCMKTS:CRTG) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	11	9	2	2.59
The Coretec Group	0	0	0	0	0.00

Rockwell Automation presently has a consensus target price of $406.67, suggesting a potential upside of 11.49%. Given Rockwell Automation’s stronger consensus rating and higher possible upside, analysts clearly believe Rockwell Automation is more favorable than The Coretec Group.

Institutional and Insider Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by company insiders. Comparatively, 63.1% of The Coretec Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.34 billion	4.91	$869.00 million	$8.74	41.73
The Coretec Group	N/A	N/A	-$2.31 million	N/A	N/A

Rockwell Automation has higher revenue and earnings than The Coretec Group.

Volatility & Risk

Rockwell Automation has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, The Coretec Group has a beta of -0.84, indicating that its share price is 184% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	11.56%	34.92%	11.53%
The Coretec Group	N/A	N/A	N/A

Summary

Rockwell Automation beats The Coretec Group on 11 of the 12 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 The Coretec Group

The Coretec Group Inc. engages in the development of silicon anode active materials for lithium-ion batteries and cyclohexasilane for electric vehicles, cleantech, and tech applications. The company was founded in 2002 and is headquartered in Ann Arbor, Michigan.