Comparing Rockwell Automation (NYSE:ROK) and EnWave (OTCMKTS:NWVCF)

EnWave (OTCMKTS:NWVCF) and Rockwell Automation (NYSE:ROK) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EnWave	N/A	N/A	N/A
Rockwell Automation	11.56%	34.09%	11.13%

Analyst Ratings

This is a summary of current ratings and recommmendations for EnWave and Rockwell Automation, as reported by MarketBeat.com.

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

Rockwell Automation has a consensus price target of $286.47, indicating a potential upside of 6.12%. Given Rockwell Automation’s higher possible upside, analysts plainly believe Rockwell Automation is more favorable than EnWave.

Institutional & Insider Ownership

9.9% of EnWave shares are held by institutional investors. Comparatively, 75.8% of Rockwell Automation 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, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares EnWave and Rockwell Automation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EnWave	N/A	N/A	N/A	($0.08)	-2.32
Rockwell Automation	$8.79 billion	3.50	$1.39 billion	$10.23	26.39

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

Summary

Rockwell Automation beats EnWave on 10 of the 10 factors compared between the two stocks.

About EnWave

EnWave Corporation designs, constructs, markets, and sells vacuum-microwave machinery for the food, cannabis, and biomaterial dehydration industries in Canada and the United States. The company operates through EnWave and NutraDried segments. It also offers radiant energy vacuum (REV) platforms, such as nutraREV for dehydration of fruits, vegetables, herbs, dairy products, meats, and seafood; and quantaREV designed for low-temperature dehydration of solid, liquid, and granular or encapsulated food or cannabis products. In addition, the company provides freezeREV for the dehydration of biomaterial and pharmaceutical products; and REVworx offers toll manufacturing services for various food product. Further, it manufactures, markets, and sells certain dehydrated food products. EnWave Corporation is headquartered in Delta, Canada.

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.