Financial Contrast: Regal Rexnord (NYSE:RRX) & Ascent Industries (NASDAQ:ACNT)

Regal Rexnord (NYSE:RRXGet Free Report) and Ascent Industries (NASDAQ:ACNTGet Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 26.0% of Ascent Industries shares are held by institutional investors. 0.6% of Regal Rexnord shares are held by company insiders. Comparatively, 7.5% of Ascent Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Regal Rexnord and Ascent Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Rexnord 0 3 7 0 2.70
Ascent Industries 1 0 0 0 1.00

Regal Rexnord currently has a consensus price target of $237.80, suggesting a potential upside of 7.78%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, equities analysts clearly believe Regal Rexnord is more favorable than Ascent Industries.

Profitability

This table compares Regal Rexnord and Ascent Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Rexnord 4.78% 9.49% 4.65%
Ascent Industries 1.54% -4.37% -3.31%

Earnings & Valuation

This table compares Regal Rexnord and Ascent Industries”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regal Rexnord $6.00 billion 2.45 $279.50 million $4.30 51.31
Ascent Industries $76.52 million 1.64 $870,000.00 $0.13 106.92

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

Volatility and Risk

Regal Rexnord has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Ascent Industries has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Summary

Regal Rexnord beats Ascent Industries on 12 of the 14 factors compared between the two stocks.

About Regal Rexnord

(Get Free Report)

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.

About Ascent Industries

(Get Free Report)

Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.

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