Symbotic (NASDAQ:SYM) vs. Regal Rexnord (NYSE:RRX) Critical Analysis

Symbotic (NASDAQ:SYM) and Regal Rexnord (NYSE:RRX) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares Symbotic and Regal Rexnord’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Symbotic	$1.50 billion	13.47	-$23.87 million	($0.24)	-143.67
Regal Rexnord	$6.57 billion	1.44	-$57.40 million	($0.48)	-296.94

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

Institutional & Insider Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 38.3% of Symbotic shares are held by insiders. Comparatively, 0.8% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Symbotic	-1.27%	5.27%	0.65%
Regal Rexnord	-0.48%	9.42%	3.86%

Analyst Recommendations

This is a summary of recent ratings and target prices for Symbotic and Regal Rexnord, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Symbotic	0	3	11	0	2.79
Regal Rexnord	0	0	5	0	3.00

Symbotic presently has a consensus target price of $55.69, suggesting a potential upside of 61.52%. Regal Rexnord has a consensus target price of $192.00, suggesting a potential upside of 34.71%. Given Symbotic’s higher possible upside, analysts clearly believe Symbotic is more favorable than Regal Rexnord.

Risk and Volatility

Symbotic has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

Symbotic beats Regal Rexnord on 8 of the 14 factors compared between the two stocks.

About Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.

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.