Critical Review: Mechanical Technology (MKTY) vs. Rockwell Automation (ROK)

Mechanical Technology (OTCMKTS:MKTY) and Rockwell Automation (NYSE:ROK) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Mechanical Technology 14.12% 22.33% 17.85%
Rockwell Automation 5.97% 48.24% 14.85%



Dividends

Rockwell Automation pays an annual dividend of $3.68 per share and has a dividend yield of 2.3%. Mechanical Technology does not pay a dividend. Rockwell Automation pays out 54.4% of its earnings in the form of a dividend. Rockwell Automation has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Mechanical Technology and Rockwell Automation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mechanical Technology 0 0 0 0 N/A
Rockwell Automation 4 8 3 0 1.93

Rockwell Automation has a consensus target price of $181.42, suggesting a potential upside of 12.46%. Given Rockwell Automation’s higher probable upside, analysts clearly believe Rockwell Automation is more favorable than Mechanical Technology.

Risk & Volatility

Mechanical Technology has a beta of -0.73, meaning that its share price is 173% less volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

74.8% of Rockwell Automation shares are held by institutional investors. 45.4% of Mechanical Technology shares are held by company insiders. Comparatively, 1.7% of Rockwell Automation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Mechanical Technology and Rockwell Automation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mechanical Technology $7.06 million 1.22 $580,000.00 N/A N/A
Rockwell Automation $6.31 billion 3.15 $825.70 million $6.76 23.86

Rockwell Automation has higher revenue and earnings than Mechanical Technology.

Summary

Rockwell Automation beats Mechanical Technology on 11 of the 15 factors compared between the two stocks.

Mechanical Technology Company Profile

Mechanical Technology, Incorporated, through its subsidiary, MTI Instruments, Inc., designs, manufactures, and markets precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems, and wafer inspection tools worldwide. It offers electronic gauging instruments for position, displacement, and vibration applications in the industrial manufacturing/production markets, as well as the research, design, and process development market. The company also provides engine balancing and vibration analysis systems for military and commercial aircraft; metrology tools for semiconductor and solar wafer characterization; and tensile stage systems for materials testing and precision linear displacement gauges for use in academic and industrial research and development settings. It sells its precision automated manufacturing, and research and development sectors through direct sales and representatives in the Americas; and through distributors and agents in Europe and Asia, as well as axial turbo machinery directly to end users. The company serves electronics, aircraft, aerospace, automotive, semiconductor, and research industries. Mechanical Technology, Incorporated was founded in 1961 and is headquartered in Albany, New York.

Rockwell Automation Company Profile

Rockwell Automation Inc. provides industrial automation and information solutions worldwide. It operates in two segments, Architecture & Software; and Control Products & Solutions. The Architecture & Software segment provides control platforms, including controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, and industrial computers that perform multiple control disciplines and monitoring of applications, such as discrete, batch and continuous process, drives control, motion control, and machine safety control. This segment also offers configuration and visualization software, which is used to operate and supervise control platforms, process control software, and manufacturing execution systems and information solution software to enhance productivity and meet regulatory requirements; and other products comprising sensors, machine safety components, and linear motion control products. The Control Products & Solutions segment offers low and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, push buttons, signaling devices, termination and protection devices, relays, and timers; and various packaged solutions, such as configured drives and motor control centers to automation and information solutions. This segment also offers life-cycle support services, such as technical support and repair, asset management, training, maintenance, and safety and network consulting services. The company's brands include Allen-Bradley and Rockwell Software. It serves food and beverage, home and personal care, life sciences, automotive and tire, oil and gas, and mining and metal industries through independent distributors and direct sales force in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Rockwell Automation Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

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