Contrasting Legrand (OTCMKTS:LGRVF) and Emerson Electric (OTCMKTS:EMR)

Legrand (OTCMKTS:LGRVF) and Emerson Electric (NYSE:EMR) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legrand 1 0 0 0 1.00
Emerson Electric 0 8 7 0 2.47

Emerson Electric has a consensus price target of $73.33, suggesting a potential downside of 0.99%. Given Emerson Electric’s stronger consensus rating and higher possible upside, analysts clearly believe Emerson Electric is more favorable than Legrand.

Volatility and Risk

Legrand has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Legrand and Emerson Electric’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legrand $7.08 billion 2.99 $911.38 million $3.39 23.39
Emerson Electric $18.37 billion 2.48 $2.31 billion $3.69 20.07

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

Profitability

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

Net Margins Return on Equity Return on Assets
Legrand 12.91% 17.04% 7.64%
Emerson Electric 12.55% 26.32% 10.72%

Institutional and Insider Ownership

70.3% of Emerson Electric shares are held by institutional investors. 0.1% of Emerson Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Emerson Electric pays an annual dividend of $1.96 per share and has a dividend yield of 2.6%. Legrand does not pay a dividend. Emerson Electric pays out 53.1% of its earnings in the form of a dividend.

Summary

Emerson Electric beats Legrand on 12 of the 16 factors compared between the two stocks.

Legrand Company Profile

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers a range of products and solutions that connect buildings to energy, data, and lighting, such as switches, power sockets, distribution panels, circuit breakers, lighting management products, security systems, trunkings, floor boxes, enclosures, sockets, screen mounts, uninterruptible power supply devices, tubes, ducts, extensions, and others. Its products are used in hotels, offices, data centers, and shopping centers, as well as residential, healthcare, and industrial sectors. The company was founded in 1865 and is headquartered in Limoges, France.

Emerson Electric Company Profile

Emerson Electric Co., a technology and engineering company, provides various solutions to industrial, commercial, and consumer markets worldwide. The company's Automation Solutions segment offers products and integrated solutions, including measurement and analytical instrumentation; valves, actuators, and regulators; industrial solutions; and process control systems and solutions. It serves the oil and gas, refining, chemicals and power generation, pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets. The company's Climate Technologies segment offers residential and commercial heating and air conditioning products, such as residential and variable speed scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; sensors and thermistors for home appliances; and temperature sensors and controls. It also provides commercial and industrial refrigeration products that include reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems for use in medical, food processing, and cold storage applications. In addition, this segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; and temperature management and monitoring products for the foodservice markets. Its Tools & Home Products segment offers professional and homeowner tools, and appliance solutions. The company was formerly known as The Emerson Electric Manufacturing Company and changed its name to Emerson Electric Co. in 2000. Emerson Electric Co. was founded in 1890 and is headquartered in St. Louis, Missouri.

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