Emerson Electric (EMR) versus Itron (ITRI) Head-To-Head Analysis

Emerson Electric (NYSE: EMR) and Itron (NASDAQ:ITRI) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Emerson Electric and Itron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerson Electric 8.89% 22.32% 9.25%
Itron 1.60% 15.43% 6.32%

Dividends

Emerson Electric pays an annual dividend of $1.92 per share and has a dividend yield of 3.1%. Itron does not pay a dividend. Emerson Electric pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Emerson Electric has increased its dividend for 60 consecutive years.

Earnings & Valuation

This table compares Emerson Electric and Itron’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Emerson Electric $14.76 billion 2.70 $3.18 billion $2.25 27.71
Itron $1.98 billion 1.42 $221.70 million $0.80 91.00

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

Risk & Volatility

Emerson Electric has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Itron has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

70.2% of Emerson Electric shares are held by institutional investors. Comparatively, 93.8% of Itron shares are held by institutional investors. 0.8% of Emerson Electric shares are held by insiders. Comparatively, 2.0% of Itron shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Emerson Electric and Itron, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerson Electric 1 10 3 0 2.14
Itron 0 2 6 0 2.75

Emerson Electric currently has a consensus target price of $61.44, indicating a potential downside of 1.45%. Itron has a consensus target price of $80.00, indicating a potential upside of 9.89%. Given Itron’s stronger consensus rating and higher possible upside, analysts plainly believe Itron is more favorable than Emerson Electric.

Summary

Emerson Electric beats Itron on 10 of the 17 factors compared between the two stocks.

About Emerson Electric

Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.

About Itron

Itron, Inc. (Itron) is a technology and service company. The Company provides solutions that measure, manage and analyze energy and water use. The Company operates through three segments: Electricity, Gas and Water. It provides a portfolio of products, solutions, software and services to electric, gas and water utility customers across the globe. It offers solutions that enable electric and natural gas utilities to build smart grids to manage assets. It offers a product portfolio, including standard meters and smart metering products, systems and services, for applications in the residential and commercial industrial markets for water and heat. The Company operates under the Itron brand across the world. Its Gas and Water manufacturing facilities are located throughout the world, while its Electricity manufacturing facilities are located in Europe, Middle East and Africa (EMEA), and North America.

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