Seek Returns logo

EMR vs. RKLB: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at EMR and RKLB, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolEMRRKLB
Company NameEmerson Electric Co.Rocket Lab Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryElectrical EquipmentAerospace & Defense
Market Capitalization72.69 billion USD23.22 billion USD
ExchangeNYSENasdaqCM
Listing DateJune 1, 1972November 24, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of EMR and RKLB 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.

EMR vs. RKLB: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolEMRRKLB
5-Day Price Return-1.85%-12.25%
13-Week Price Return-3.17%2.87%
26-Week Price Return5.01%108.61%
52-Week Price Return-1.98%141.85%
Month-to-Date Return-8.59%-27.69%
Year-to-Date Return2.95%78.80%
10-Day Avg. Volume3.14M21.03M
3-Month Avg. Volume3.01M22.41M
3-Month Volatility25.45%80.67%
Beta1.272.28

Profitability

Return on Equity (TTM)

EMR

13.06%

Electrical Equipment Industry

Max
35.25%
Q3
23.48%
Median
11.69%
Q1
6.40%
Min
-4.39%

EMR’s Return on Equity of 13.06% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

RKLB

-28.40%

Aerospace & Defense Industry

Max
43.89%
Q3
23.64%
Median
12.98%
Q1
8.07%
Min
-2.55%

RKLB has a negative Return on Equity of -28.40%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

EMR vs. RKLB: A comparison of their Return on Equity (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

EMR

12.73%

Electrical Equipment Industry

Max
20.74%
Q3
10.52%
Median
6.30%
Q1
3.04%
Min
-0.75%

A Net Profit Margin of 12.73% places EMR in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

RKLB

-35.64%

Aerospace & Defense Industry

Max
14.96%
Q3
9.50%
Median
6.59%
Q1
4.45%
Min
1.01%

RKLB has a negative Net Profit Margin of -35.64%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

EMR vs. RKLB: A comparison of their Net Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

EMR

18.00%

Electrical Equipment Industry

Max
26.16%
Q3
14.51%
Median
8.86%
Q1
4.72%
Min
-5.64%

An Operating Profit Margin of 18.00% places EMR in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RKLB

-41.36%

Aerospace & Defense Industry

Max
17.97%
Q3
12.09%
Median
9.29%
Q1
6.41%
Min
-1.59%

RKLB has a negative Operating Profit Margin of -41.36%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

EMR vs. RKLB: A comparison of their Operating Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolEMRRKLB
Return on Equity (TTM)13.06%-28.40%
Return on Assets (TTM)6.19%-12.72%
Net Profit Margin (TTM)12.73%-35.64%
Operating Profit Margin (TTM)18.00%-41.36%
Gross Profit Margin (TTM)52.84%31.70%

Financial Strength

Current Ratio (MRQ)

EMR

0.85

Electrical Equipment Industry

Max
3.09
Q3
2.05
Median
1.44
Q1
1.14
Min
0.85

EMR’s Current Ratio of 0.85 falls into the lower quartile for the Electrical Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

RKLB

3.18

Aerospace & Defense Industry

Max
3.37
Q3
2.01
Median
1.22
Q1
1.07
Min
0.68

RKLB’s Current Ratio of 3.18 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

EMR vs. RKLB: A comparison of their Current Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

EMR

0.72

Electrical Equipment Industry

Max
1.57
Q3
0.91
Median
0.55
Q1
0.32
Min
0.00

EMR’s Debt-to-Equity Ratio of 0.72 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RKLB

0.34

Aerospace & Defense Industry

Max
1.89
Q3
0.99
Median
0.63
Q1
0.39
Min
0.03

Falling into the lower quartile for the Aerospace & Defense industry, RKLB’s Debt-to-Equity Ratio of 0.34 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

EMR vs. RKLB: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

EMR

13.38

Electrical Equipment Industry

Max
47.39
Q3
20.31
Median
9.84
Q1
1.16
Min
-10.92

EMR’s Interest Coverage Ratio of 13.38 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

RKLB

-45.87

Aerospace & Defense Industry

Max
29.86
Q3
19.49
Median
7.09
Q1
2.62
Min
-7.63

RKLB has a negative Interest Coverage Ratio of -45.87. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

EMR vs. RKLB: A comparison of their Interest Coverage Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolEMRRKLB
Current Ratio (MRQ)0.853.18
Quick Ratio (MRQ)0.632.69
Debt-to-Equity Ratio (MRQ)0.720.34
Interest Coverage Ratio (TTM)13.38-45.87

Growth

Revenue Growth

EMR vs. RKLB: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

EMR vs. RKLB: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

EMR

1.67%

Electrical Equipment Industry

Max
2.91%
Q3
1.66%
Median
1.09%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.67%, EMR offers a more attractive income stream than most of its peers in the Electrical Equipment industry, signaling a strong commitment to shareholder returns.

RKLB

0.00%

Aerospace & Defense Industry

Max
2.87%
Q3
1.46%
Median
0.58%
Q1
0.10%
Min
0.00%

RKLB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

EMR vs. RKLB: A comparison of their Dividend Yield (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

EMR

45.06%

Electrical Equipment Industry

Max
130.92%
Q3
64.56%
Median
37.60%
Q1
0.00%
Min
0.00%

EMR’s Dividend Payout Ratio of 45.06% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RKLB

0.00%

Aerospace & Defense Industry

Max
110.40%
Q3
51.46%
Median
20.20%
Q1
4.21%
Min
0.00%

RKLB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

EMR vs. RKLB: A comparison of their Dividend Payout Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolEMRRKLB
Dividend Yield (TTM)1.67%0.00%
Dividend Payout Ratio (TTM)45.06%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EMR

31.26

Electrical Equipment Industry

Max
51.71
Q3
37.50
Median
23.51
Q1
19.68
Min
8.22

EMR’s P/E Ratio of 31.26 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RKLB

--

Aerospace & Defense Industry

Max
94.22
Q3
53.31
Median
32.27
Q1
24.64
Min
14.57

P/E Ratio data for RKLB is currently unavailable.

EMR vs. RKLB: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

EMR

3.98

Electrical Equipment Industry

Max
7.22
Q3
4.00
Median
1.70
Q1
1.04
Min
0.43

EMR’s P/S Ratio of 3.98 aligns with the market consensus for the Electrical Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RKLB

41.72

Aerospace & Defense Industry

Max
7.20
Q3
3.95
Median
2.35
Q1
1.71
Min
0.32

With a P/S Ratio of 41.72, RKLB trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

EMR vs. RKLB: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

EMR

3.77

Electrical Equipment Industry

Max
10.81
Q3
5.42
Median
3.69
Q1
1.77
Min
0.78

EMR’s P/B Ratio of 3.77 is within the conventional range for the Electrical Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RKLB

18.10

Aerospace & Defense Industry

Max
18.61
Q3
9.58
Median
5.45
Q1
3.11
Min
0.94

RKLB’s P/B Ratio of 18.10 is in the upper tier for the Aerospace & Defense 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.

EMR vs. RKLB: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolEMRRKLB
Price-to-Earnings Ratio (TTM)31.26--
Price-to-Sales Ratio (TTM)3.9841.72
Price-to-Book Ratio (MRQ)3.7718.10
Price-to-Free Cash Flow Ratio (TTM)26.15--
EMR vs. RKLB: A Head-to-Head Stock Comparison