Regal Rexnord (NYSE:RRX – Get Free Report) and Ouster (NYSE:OUST – Get Free Report) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Earnings & Valuation
This table compares Regal Rexnord and Ouster’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Regal Rexnord | $6.25 billion | 1.44 | -$57.40 million | ($0.48) | -281.71 |
| Ouster | $83.28 million | 5.34 | -$374.11 million | ($5.58) | -1.76 |
Regal Rexnord has higher revenue and earnings than Ouster. Regal Rexnord is trading at a lower price-to-earnings ratio than Ouster, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Institutional and Insider Ownership
99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 31.5% of Ouster shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by company insiders. Comparatively, 7.8% of Ouster shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Regal Rexnord and Ouster’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Regal Rexnord | -0.48% | 9.42% | 3.86% |
| Ouster | -239.89% | -88.42% | -50.61% |
Analyst Ratings
This is a breakdown of current recommendations for Regal Rexnord and Ouster, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Regal Rexnord | 0 | 1 | 5 | 0 | 2.83 |
| Ouster | 0 | 3 | 2 | 0 | 2.40 |
Regal Rexnord presently has a consensus price target of $192.00, indicating a potential upside of 41.99%. Ouster has a consensus price target of $12.10, indicating a potential upside of 23.09%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, research analysts clearly believe Regal Rexnord is more favorable than Ouster.
Summary
Regal Rexnord beats Ouster on 10 of the 14 factors compared between the two stocks.
About Regal Rexnord
Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.
About Ouster
Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.
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