Omnitek Engineering (OTCMKTS:OMTK) versus Regal Rexnord (NYSE:RRX) Head to Head Analysis

Omnitek Engineering (OTCMKTS:OMTK) and Regal Rexnord (NYSE:RRX) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Omnitek Engineering and Regal Rexnord’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Regal Rexnord	4.71%	9.60%	4.61%

Risk and Volatility

Omnitek Engineering has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 45.5% of Omnitek Engineering shares are held by company insiders. Comparatively, 0.6% of Regal Rexnord shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Omnitek Engineering and Regal Rexnord”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.24	-$170,000.00	$0.02	0.56
Regal Rexnord	$5.93 billion	2.33	$279.50 million	$4.20	49.45

Regal Rexnord has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Regal Rexnord, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Omnitek Engineering and Regal Rexnord, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Regal Rexnord	0	3	7	0	2.70

Regal Rexnord has a consensus price target of $228.50, suggesting a potential upside of 10.02%. Given Regal Rexnord’s stronger consensus rating and higher possible upside, analysts plainly believe Regal Rexnord is more favorable than Omnitek Engineering.

Summary

Regal Rexnord beats Omnitek Engineering on 11 of the 14 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.