Financial Analysis: NeoVolta (NASDAQ:NEOV) versus Rockwell Automation (NYSE:ROK)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rockwell Automation and NeoVolta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	12	9	0	2.43
NeoVolta	1	2	4	0	2.43

Rockwell Automation presently has a consensus target price of $469.14, suggesting a potential upside of 9.94%. NeoVolta has a consensus target price of $9.50, suggesting a potential upside of 142.97%. Given NeoVolta’s higher possible upside, analysts plainly believe NeoVolta is more favorable than Rockwell Automation.

Institutional & Insider Ownership

75.7% of Rockwell Automation shares are held by institutional investors. Comparatively, 5.1% of NeoVolta shares are held by institutional investors. 0.8% of Rockwell Automation shares are held by insiders. Comparatively, 4.0% of NeoVolta shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	13.39%	39.83%	12.97%
NeoVolta	-63.35%	-141.89%	-89.61%

Risk & Volatility

Rockwell Automation has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, NeoVolta has a beta of -0.87, suggesting that its share price is 187% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rockwell Automation and NeoVolta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.34 billion	5.68	$869.00 million	$10.67	39.99
NeoVolta	$8.43 million	26.26	-$5.03 million	($0.33)	-11.85

Rockwell Automation has higher revenue and earnings than NeoVolta. NeoVolta 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 NeoVolta on 10 of the 13 factors compared between the two stocks.

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.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.