Head-To-Head Review: Rockwell Automation (NYSE:ROK) & Velan (OTCMKTS:VLNSF)

Rockwell Automation (NYSE:ROKGet Free Report) and Velan (OTCMKTS:VLNSFGet Free Report) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Rockwell Automation 15.32% 40.19% 12.32%
Velan N/A N/A N/A

Earnings and Valuation

This table compares Rockwell Automation and Velan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rockwell Automation $9.06 billion 3.89 $1.39 billion $11.96 25.69
Velan N/A N/A N/A $1.10 3.55

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

Analyst Ratings

This is a breakdown of recent recommendations for Rockwell Automation and Velan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Automation 1 6 3 0 2.20
Velan 0 0 0 0 N/A

Rockwell Automation currently has a consensus target price of $323.18, indicating a potential upside of 5.18%. Given Rockwell Automation’s higher possible upside, equities analysts plainly believe Rockwell Automation is more favorable than Velan.

Institutional and Insider Ownership

80.8% of Rockwell Automation shares are held by institutional investors. Comparatively, 13.4% of Velan shares are held by institutional investors. 0.7% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Rockwell Automation pays an annual dividend of $5.00 per share and has a dividend yield of 1.6%. Velan pays an annual dividend of $0.33 per share and has a dividend yield of 8.4%. Rockwell Automation pays out 41.8% of its earnings in the form of a dividend. Velan pays out 30.0% 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 14 consecutive years. Velan is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rockwell Automation beats Velan on 11 of the 13 factors compared between the two stocks.

About Rockwell Automation

(Get Free Report)

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 Velan

(Get Free Report)

Velan Inc. designs, manufactures, and markets industrial valves worldwide. The company offers quarter-turn valves, such as ball, high performance three-piece ball, general purpose ball, metal-seated ball, triple-offset, high performance cryogenic butterfly, coker ball, and cap-tight batch digester capping valves; and gate, globe, and check valves, including pressure seal, bolted bonnet high pressure, cast steel, cast stainless steel corrosion resistant, small forged, bonnetless, and dual-plate check valves, as well as maintenance valves for nuclear service. It also provides cryogenic valves comprising cast steel cryogenic, small forged cryogenic, cryogenic triple-offset, ball, and cryogenic control valves; cast and small forged hydrofluoric acid valves; bimetallic and thermodynamic steam traps; and bellows seal bolted bonnet high pressure, seal cast steel, and seal API small forged valves. The company serves nuclear power, power, oil and gas, refining, chemical, pulp and paper, marine, mining, LNG and cryogenics, and water and wastewater industries. It primarily sells its products through independent third-party distributors and sales agents. The company was formerly known as Velan Engineering Ltd. and changed its name to Velan Inc. in February 1981. Velan Inc. was founded in 1950 and is headquartered in Montreal, Canada. Velan Inc. is a subsidiary of Velan Holding Co. Ltd.

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