Comparing Regal Rexnord (NYSE:RRX) and ATS (NYSE:ATS)

Regal Rexnord ( NYSE:RRX – Get Free Report ) and ATS ( NYSE:ATS – Get Free Report ) are both industrial products companies, but which is the better investment? We’ll compare the two businesses based on their earnings strength, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and volatility

Regal Rexnord has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, ATS has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. more volatile than the S&P 500.

return

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

Analyst ratings

This is a summary of current ratings and recommendations for Regal Rexnord and ATS, as reported by MarketBeat.

Regal Rexnord currently has a consensus target price of $191.29, suggesting a potential upside of 14.42%. ATS has a consensus target price of $42.00, suggesting a potential upside of 41.27%. Given ATS’s higher probable upside, analysts plainly believe ATS is more favorable than Regal Rexnord.

Rating and Earnings

This table compares Regal Rexnord and ATS’s revenue, earnings per share (EPS) and valuation.

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

Institutional and privileged ownership

99.7% of Regal Rexnord shares are owned by institutional investors. Comparatively, 75.8% of ATS shares are held by institutional investors. 0.8% of Regal Rexnord shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, big money managers and endowments believe the stock is poised for long-term growth.

Summary

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

About Regal Rexnord

(Get a free report)

Regal Rexnord Corporation manufactures and sells industrial propulsion solutions, power transmission components, electric motors and electronic controls, air transportation products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, transmissions and mechanical power transmission components, gearboxes, gear motors, clutches, brakes, special and industrial powertrain components and solutions for food and beverage, material handling in bulk, e-commerce/warehouse distribution, energy, mining, marine, agricultural machinery, lawn and garden and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, variable speed electronic controls and blowers for the residential, commercial HVAC, water heater, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, transportation and general commercial equipment markets. The Automation and Motion Control segment provides transportation products, transportation automation subsystems, aerospace components, precision rotary 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 center, medical device, packaging, printing, semiconductor, robotics, industrial power tools, off-highway mobile, food and beverage processing and other applications. The Industrial Systems segment offers integral engines, alternators and aftermarket parts and kits for the agriculture, nature, mining, oil and gas, food and beverage, data center, primary and backup power and general industrial equipment markets. It sells its products directly to OEMs, distributors and end users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is headquartered in Milwaukee, Wisconsin.

About ATS

(Get a free report)

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in the planning, design, construction, commissioning and maintenance of automated manufacturing and assembly systems, including automation products and test solutions. In addition, it provides pre-automation services including discovery and analysis, concept development, simulation and TCO modeling; post-automation services, including training, process optimization, preventive maintenance, emergency and on-call support, spare parts, replenishment, modernization and relocation of equipment; and contract manufacturing services, as well as service and after-sales. In addition, the company provides engineering design, prototyping, process verification, specification writing, software development and manufacturing process control, standard automation products/platforms, equipment design and construction, third-party equipment qualification, procurement and integration, installation of automation systems, product line commissioning, validation and documentation services. In addition, it offers value engineering, supply chain management and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory management systems to capture, analyze and use real-time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, increase efficiency operational and unlock performance for sustainable production improvements. ATS Corporation serves the life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, storage and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

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