EMERSON ELECTRIC CO. vs EATON CORPORATION plc, two Industrial Machinery stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Eaton earns 20% on its equity to Emerson's 12%, and the spread is mostly about how each is built rather than how fast either prints sales, which the numbers here do not tell us. Eaton carries more debt, 1.07 to 0.66, so part of that higher return rides on a thinner equity base, though its 7% return on assets still beats Emerson's 5.8% on an unlevered basis. The two keep almost the same slice of each sales dollar, net margins of 14% and 13%, so the divergence is in the capital, not the income statement. The market pays up for Eaton, near 40 times earnings to Emerson's 34, and asks you to accept a lower free-cash yield, 2.4% to 3.7%, and a smaller dividend, 1.0% to 1.4%. The premium is for the higher return on capital, with the leverage attached.
Comparison updated 2026-06-15.
| Metric | EMR | ETN |
|---|---|---|
| Price | $138.81 | $407.11 |
| Market cap | $78.2B | $158.4B |
| Sector | Industrial Machinery | Industrial Machinery |
| Stage | Mature | Growth |
| P/E | — | 39.8 |
| P/B | 3.85 | 8.02 |
| P/S | 4.27 | 5.56 |
| EV/EBITDA | 61.9 | 171.1 |
| Revenue growth | +4.0% | +12.7% |
| Net margin | 13.3% | 14.0% |
| Return on equity | 12.0% | 20.2% |
| Return on assets | 5.8% | 7.2% |
| FCF yield | 4.0% | 2.4% |
| Dividend yield | 1.5% | 1.0% |
| Debt / equity | 0.66 | 1.07 |
| Current ratio | 0.87 | 1.19 |
| Altman Z (solvency) | 7.76 | 6.85 |
| Piotroski F (quality) | 8 / 9 | 4 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.