AOS vs. ROK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AOS and ROK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ROK’s market capitalization of 39.12 billion USD is significantly greater than AOS’s 9.65 billion USD, highlighting its more substantial market valuation.
With betas of 1.21 for AOS and 1.37 for ROK, both stocks show similar sensitivity to overall market movements.
| Symbol | AOS | ROK |
|---|---|---|
| Company Name | A. O. Smith Corporation | Rockwell Automation, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Industrial - Machinery |
| CEO | Kevin J. Wheeler | Blake D. Moret |
| Price | 67.92 USD | 347.07 USD |
| Market Cap | 9.65 billion USD | 39.12 billion USD |
| Beta | 1.21 | 1.37 |
| Exchange | NYSE | NYSE |
| IPO Date | September 30, 1983 | December 31, 1981 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AOS and ROK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AOS
27.63%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Equity of 27.63% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ROK
26.59%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, ROK’s Return on Equity of 26.59% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AOS
22.35%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Invested Capital of 22.35% signifies a highly effective use of its capital to generate profits when compared to its peers.
ROK
12.38%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
ROK’s Return on Invested Capital of 12.38% is in line with the norm for the Industrial - Machinery industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AOS
13.74%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
AOS’s Net Profit Margin of 13.74% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
ROK
11.38%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
ROK’s Net Profit Margin of 11.38% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AOS
18.57%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
AOS’s Operating Profit Margin of 18.57% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
ROK
15.56%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
ROK’s Operating Profit Margin of 15.56% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AOS | ROK |
|---|---|---|
| Return on Equity (TTM) | 27.63% | 26.59% |
| Return on Assets (TTM) | 15.99% | 8.25% |
| Return on Invested Capital (TTM) | 22.35% | 12.38% |
| Net Profit Margin (TTM) | 13.74% | 11.38% |
| Operating Profit Margin (TTM) | 18.57% | 15.56% |
| Gross Profit Margin (TTM) | 38.02% | 39.16% |
Financial Strength
Current Ratio
AOS
1.61
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AOS’s Current Ratio of 1.61 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
ROK
1.05
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
ROK’s Current Ratio of 1.05 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AOS
0.16
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the Industrial - Machinery industry, AOS’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
ROK
1.19
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
ROK’s leverage is in the upper quartile of the Industrial - Machinery industry, with a Debt-to-Equity Ratio of 1.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AOS
82.13
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
With an Interest Coverage Ratio of 82.13, AOS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.
ROK
7.79
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
ROK’s Interest Coverage Ratio of 7.79 is positioned comfortably within the norm for the Industrial - Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AOS | ROK |
|---|---|---|
| Current Ratio (TTM) | 1.61 | 1.05 |
| Quick Ratio (TTM) | 1.01 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 0.16 | 1.19 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.37 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.16 | 2.30 |
| Interest Coverage Ratio (TTM) | 82.13 | 7.79 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AOS and ROK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AOS
1.97%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.97%, AOS offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
ROK
1.49%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.49%, ROK offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AOS
36.80%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AOS’s Dividend Payout Ratio of 36.80% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
ROK
64.02%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
ROK’s Dividend Payout Ratio of 64.02% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AOS | ROK |
|---|---|---|
| Dividend Yield (TTM) | 1.97% | 1.49% |
| Dividend Payout Ratio (TTM) | 36.80% | 64.02% |
Valuation
Price-to-Earnings Ratio
AOS
18.77
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
In the lower quartile for the Industrial - Machinery industry, AOS’s P/E Ratio of 18.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
ROK
43.20
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
A P/E Ratio of 43.20 places ROK in the upper quartile for the Industrial - Machinery industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AOS
2.13
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
ROK
3.07
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AOS
2.54
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AOS’s P/S Ratio of 2.54 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ROK
4.91
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
ROK’s P/S Ratio of 4.91 is in the upper echelon for the Industrial - Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AOS
5.29
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AOS’s P/B Ratio of 5.29 is in the upper tier for the Industrial - Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
ROK
11.39
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
At 11.39, ROK’s P/B Ratio is at an extreme premium to the Industrial - Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AOS | ROK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 18.77 | 43.20 |
| Forward PEG Ratio (TTM) | 2.13 | 3.07 |
| Price-to-Sales Ratio (P/S, TTM) | 2.54 | 4.91 |
| Price-to-Book Ratio (P/B, TTM) | 5.29 | 11.39 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.74 | 36.57 |
| EV-to-EBITDA (TTM) | 12.71 | 27.04 |
| EV-to-Sales (TTM) | 2.57 | 5.37 |