Analyzing Emerson Electric (NYSE:EMR) and Ideal Power (NASDAQ:IPWR)

Emerson Electric (NYSE:EMR) and Ideal Power (NASDAQ:IPWR) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Emerson Electric and Ideal Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerson Electric	2	4	11	2	2.68
Ideal Power	0	1	0	0	2.00

Emerson Electric presently has a consensus target price of $142.28, indicating a potential downside of 4.95%. Given Emerson Electric’s stronger consensus rating and higher possible upside, research analysts clearly believe Emerson Electric is more favorable than Ideal Power.

Risk and Volatility

Emerson Electric has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Emerson Electric	13.60%	13.22%	7.57%
Ideal Power	-56,057.89%	-56.75%	-51.06%

Insider and Institutional Ownership

74.3% of Emerson Electric shares are held by institutional investors. Comparatively, 16.4% of Ideal Power shares are held by institutional investors. 0.5% of Emerson Electric shares are held by insiders. Comparatively, 5.4% of Ideal Power 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.

Earnings and Valuation

This table compares Emerson Electric and Ideal Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerson Electric	$17.49 billion	4.81	$1.97 billion	$4.18	35.81
Ideal Power	$90,000.00	531.62	-$10.42 million	($1.21)	-4.74

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

Summary

Emerson Electric beats Ideal Power on 13 of the 15 factors compared between the two stocks.

About Emerson Electric

Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

About Ideal Power

Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.