ROK’s 5.0% Decline in a Day Brings Valuations Into Focus – Is ETN a Better Deal?
Eaton (ETN) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Rockwell Automation (ROK), suggesting you may be better off investing in ETN
- ETN’s quarterly revenue growth was 7.3%, vs. ROK’s -5.9%.
- In addition, its Last 12 Months revenue growth came in at 7.0%, ahead of ROK’s -11.3%.
- ETN leads on profitability over both periods – LTM margin of 19.1% and 3-year average of 17.1%.
ROK provides industrial automation and digital transformation solutions, including hardware, software, and services, sold primarily through independent distributors and a direct sales force globally. ETN global power management company supplying electrical components, industrial parts, aerospace hydraulic systems, and vehicle transmissions, clutches, hybrid power, and engine valve solutions.
Valuation & Performance Overview
| ROK | ETN | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 32.1 | 29.0 | ETN |
| Revenue Growth | |||
| Last Quarter | -5.9% | 7.3% | ETN |
| Last 12 Months | -11.3% | 7.0% | ETN |
| Last 3 Year Average | 3.4% | 8.6% | ETN |
| Operating Margins | |||
| Last 12 Months | 14.5% | 19.1% | ETN |
| Last 3 Year Average | 16.7% | 17.1% | ETN |
| Momentum | |||
| Last 3 Year Return | 38.1% | 152.1% | ETN |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ROK Revenue Comparison | ETN Revenue Comparison
See more margin details: ROK Operating Income Comparison | ETN Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell ETN Stock to see if Eaton’s edge holds up under the hood or if Rockwell Automation still has cards to play (see Buy or Sell ROK Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ROK Return | 26% | 41% | -24% | 23% | -6% | 22% | 88% | ||
| ETN Return | 32% | 47% | -7% | 56% | 40% | 9% | 354% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 93% | ||
| Monthly Win Rates [3] | |||||||||
| ROK Win Rate | 50% | 67% | 33% | 50% | 42% | 57% | 50% | ||
| ETN Win Rate | 58% | 75% | 25% | 67% | 75% | 57% | 60% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| ROK Max Drawdown | -40% | -4% | -45% | 0% | -19% | -23% | -22% | ||
| ETN Max Drawdown | -38% | -4% | -27% | -3% | -3% | -25% | -17% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ETN Dip Buyer Analyses and ROK Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.