Investors seeking opportunities in industrial machinery often consider Emerson Electric Co. and Nordson Corporation, two prominent players with distinct innovation strategies and market footprints. Emerson excels in automation and commercial solutions across diverse sectors, while Nordson focuses on precision dispensing and advanced technology systems. Their overlapping industrial expertise makes this comparison compelling. Join me as we analyze which company offers the most attractive investment potential in today’s dynamic market.
Table of contents
Companies Overview
I will begin the comparison between Emerson Electric Co. and Nordson Corporation by providing an overview of these two companies and their main differences.
Emerson Electric Co. Overview
Emerson Electric Co. is a technology and engineering company based in Saint Louis, Missouri, serving industrial, commercial, and residential markets globally. Operating through Automation Solutions and Commercial & Residential Solutions segments, it offers measurement instruments, valves, process control software, and HVAC products. With a market cap of $81B and 73K employees, Emerson focuses on diverse sectors including oil and gas, power generation, and home appliances.
Nordson Corporation Overview
Nordson Corporation, headquartered in Westlake, Ohio, engineers and manufactures precise dispensing and coating systems for adhesives, polymers, and biomaterials worldwide. It operates through Industrial Precision Solutions and Advanced Technology Solutions segments, serving industries from packaged goods to semiconductor manufacturing. With a $14.6B market cap and 8K employees, Nordson emphasizes automated dispensing and surface treatment technologies.
Key similarities and differences
Both Emerson and Nordson operate in the industrial machinery sector in the US, focusing on engineering solutions for manufacturing and processing industries. Emerson’s broader product portfolio spans automation and HVAC solutions, while Nordson specializes in precision dispensing and coating systems. Emerson’s significantly larger workforce and market cap contrast with Nordson’s more niche focus and smaller scale, reflecting differences in business breadth and operational scope.
Income Statement Comparison
The table below presents a side-by-side comparison of the most recent fiscal year income statement figures for Emerson Electric Co. and Nordson Corporation.
| Metric | Emerson Electric Co. | Nordson Corporation |
|---|---|---|
| Market Cap | 81.1B | 14.6B |
| Revenue | 18.0B | 2.79B |
| EBITDA | 4.86B | 712M |
| EBIT | 3.17B | 561M |
| Net Income | 2.29B | 484M |
| EPS | 4.06 | 8.56 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Emerson Electric Co.
Emerson Electric Co. showed a steady revenue increase of 39.31% over 2021-2025, though net income slightly declined by 0.43%. Gross and EBIT margins remain favorable at 52.84% and 17.6%, respectively, with net margin at 12.73%. In 2025, revenue growth slowed to 3%, but EBIT surged 35.34%, boosting net margin and EPS by 13.13% and 17.83%, indicating margin improvements despite slower top-line growth.
Nordson Corporation
Nordson Corporation’s revenue rose 18.18% over the five years, with net income growing 6.63%. Gross margin of 55.16% and EBIT margin of 20.1% are favorable, while net margin stands at 17.35%. In 2025, revenue increased modestly by 3.78%, but EBIT fell 16.79%, and net margin slightly declined by 0.1%. EPS growth remained positive at 4.93%, reflecting mixed operational performance with some margin pressure.
Which one has the stronger fundamentals?
Both Emerson and Nordson have favorable overall income statement evaluations, with Emerson slightly ahead in margin improvements and EPS growth despite slower revenue gains. Nordson shows solid revenue and net income growth but faces EBIT and net margin declines recently. Emerson’s stronger margin expansion and EBIT growth in 2025 suggest more robust profitability trends, while Nordson’s mixed signals indicate caution in operational efficiency.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Emerson Electric Co. (EMR) and Nordson Corporation (NDSN) based on their latest fiscal year data.
| Ratios | Emerson Electric Co. (EMR) | Nordson Corporation (NDSN) |
|---|---|---|
| ROE | 11.3% | 15.9% |
| ROIC | 4.6% | 10.5% |
| P/E | 32.4 | 27.1 |
| P/B | 3.66 | 4.31 |
| Current Ratio | 0.88 | 1.64 |
| Quick Ratio | 0.65 | 1.05 |
| D/E | 0.65 | 0.69 |
| Debt-to-Assets | 31.3% | 35.4% |
| Interest Coverage | 9.44 | 7.04 |
| Asset Turnover | 0.43 | 0.47 |
| Fixed Asset Turnover | 6.28 | 4.70 |
| Payout Ratio | 52.0% | 37.0% |
| Dividend Yield | 1.60% | 1.36% |
Interpretation of the Ratios
Emerson Electric Co.
Emerson Electric Co. shows a mixed ratio profile with a favorable net margin of 12.73% but an unfavorable return on invested capital (4.62%) and valuation metrics like PE at 32.42 and PB at 3.66. Liquidity ratios are weak, with a current ratio of 0.88 and quick ratio of 0.65. The dividend yield is 1.6%, considered neutral, supported by stable payouts but with caution due to some unfavorable financial leverage and cash flow metrics.
Nordson Corporation
Nordson Corporation exhibits mostly favorable ratios, including a strong net margin of 17.35%, return on equity of 15.92%, and return on invested capital at 10.49%. Its liquidity position is solid, with a current ratio of 1.64 and quick ratio of 1.05. Dividend yield stands at 1.36%, neutral in status, reflecting balanced shareholder returns with manageable leverage and positive interest coverage, despite a slightly high price-to-book ratio.
Which one has the best ratios?
Nordson Corporation holds a more favorable overall ratio structure, with 57.14% of key ratios rated favorable compared to Emerson’s 21.43%. Nordson’s stronger profitability, liquidity, and coverage metrics contrast with Emerson’s challenges in liquidity and valuation. However, both companies have areas of concern, so investors should weigh these factors carefully in context.
Strategic Positioning
This section compares the strategic positioning of Emerson Electric Co. (EMR) and Nordson Corporation (NDSN), focusing on market position, key segments, and exposure to technological disruption:
Emerson Electric Co. (EMR)
- Large market cap of 81B, facing competitive pressure in industrial machinery.
- Diverse segments: Automation Solutions and Commercial & Residential Solutions drive revenues.
- Moderate exposure with automation and control technologies across various industries.
Nordson Corporation (NDSN)
- Smaller market cap of 14.6B, competing in specialized industrial machinery.
- Concentrated in Industrial Precision and Advanced Technology Solutions segments.
- Exposure through advanced dispensing and coating technologies in industrial sectors.
EMR vs NDSN Positioning
EMR pursues a diversified approach across industrial, commercial, and residential markets with broad product lines, while NDSN focuses on niche precision dispensing and coating systems, which may offer more specialized competitive advantages but less diversification.
Which has the best competitive advantage?
NDSN shows a slightly favorable moat with value creation despite declining profitability, whereas EMR exhibits a very unfavorable moat with value destruction, indicating NDSN currently maintains a stronger competitive advantage.
Stock Comparison
The stock price movements over the past year reveal contrasting dynamics between Emerson Electric Co. (EMR) and Nordson Corporation (NDSN), with EMR showing a strong upward trajectory while NDSN exhibits a mild decline despite recent positive momentum.
Trend Analysis
Emerson Electric Co. (EMR) experienced a bullish trend over the past 12 months with a 35.83% price increase and accelerating momentum, reaching a high of 149.63 and a low of 94.57, supported by moderate volatility (12.39 std deviation).
Nordson Corporation (NDSN) showed a slight bearish trend over the same period with a -1.24% price change but an accelerating trend and higher volatility (23.44 std deviation), with prices ranging from 176.73 to 278.89.
Comparing both, EMR delivered the highest market performance with a strong bullish trend, while NDSN’s overall trend remained bearish despite recent gains.
Target Prices
The current analyst consensus on target prices for Emerson Electric Co. and Nordson Corporation reflects a generally positive outlook.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Emerson Electric Co. | 170 | 125 | 149.67 |
| Nordson Corporation | 295 | 240 | 274.17 |
Analysts expect Emerson’s stock to appreciate slightly above its current price of 144.33 USD, while Nordson’s target consensus suggests further upside from its current 261.22 USD, indicating confidence in both companies’ growth prospects.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Emerson Electric Co. (EMR) and Nordson Corporation (NDSN):
Rating Comparison
EMR Rating
- Rating: B, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 3, indicating moderate valuation based on future cash flows.
- ROE Score: 3, showing moderate efficiency in generating profit from equity.
- ROA Score: 4, reflecting favorable asset utilization to generate earnings.
- Debt To Equity Score: 2, indicating moderate financial risk and balance sheet strength.
- Overall Score: 3, rated as moderate financial standing.
NDSN Rating
- Rating: B, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 3, indicating moderate valuation based on future cash flows.
- ROE Score: 4, showing favorable efficiency in generating profit from equity.
- ROA Score: 4, reflecting favorable asset utilization to generate earnings.
- Debt To Equity Score: 2, indicating moderate financial risk and balance sheet strength.
- Overall Score: 3, rated as moderate financial standing.
Which one is the best rated?
Both EMR and NDSN share the same overall rating of B with moderate overall scores and identical discounted cash flow and debt-to-equity scores. However, NDSN has higher ROE and equal ROA scores, indicating a stronger profit generation efficiency compared to EMR.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Emerson Electric Co. and Nordson Corporation:
EMR Scores
- Altman Z-Score: 2.68, positioned in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 7, indicating strong financial health and value potential.
NDSN Scores
- Altman Z-Score: 4.90, positioned in the safe zone, indicating low bankruptcy risk.
- Piotroski Score: 7, indicating strong financial health and value potential.
Which company has the best scores?
Based on the provided data, Nordson holds a better Altman Z-Score in the safe zone, while both companies share the same strong Piotroski Score. Thus, Nordson shows a lower bankruptcy risk compared to Emerson.
Grades Comparison
Here is a detailed comparison of the latest grades assigned to Emerson Electric Co. and Nordson Corporation by reputable grading companies:
Emerson Electric Co. Grades
The following table lists recent grades for Emerson Electric Co. from established financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-07 |
| Barclays | Maintain | Equal Weight | 2026-01-07 |
| UBS | Upgrade | Buy | 2026-01-05 |
| Jefferies | Downgrade | Hold | 2025-12-10 |
| JP Morgan | Maintain | Neutral | 2025-11-10 |
| RBC Capital | Maintain | Outperform | 2025-11-06 |
| Barclays | Maintain | Equal Weight | 2025-11-06 |
| RBC Capital | Maintain | Outperform | 2025-10-16 |
| JP Morgan | Maintain | Neutral | 2025-10-15 |
| Wells Fargo | Downgrade | Equal Weight | 2025-10-06 |
Overall, Emerson Electric’s grades show a mix of neutral to moderately positive ratings, with some recent upgrades balanced by downgrades.
Nordson Corporation Grades
Below is a summary of recent grades for Nordson Corporation from recognized grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Buy | 2025-12-12 |
| Baird | Maintain | Neutral | 2025-12-12 |
| DA Davidson | Maintain | Buy | 2025-12-11 |
| Keybanc | Maintain | Overweight | 2025-12-11 |
| Oppenheimer | Maintain | Outperform | 2025-08-25 |
| Baird | Maintain | Neutral | 2025-08-22 |
| Keybanc | Maintain | Overweight | 2025-07-15 |
| Baird | Maintain | Neutral | 2025-05-30 |
| Oppenheimer | Upgrade | Outperform | 2025-05-30 |
| Keybanc | Maintain | Overweight | 2025-04-08 |
Nordson’s ratings consistently reflect positive sentiment, with multiple “Buy,” “Overweight,” and “Outperform” grades maintained or upgraded over recent months.
Which company has the best grades?
Nordson Corporation has received more consistently positive grades, including several “Buy” and “Outperform” ratings, compared to Emerson Electric’s mixed neutral and moderate ratings. This suggests stronger analyst confidence in Nordson’s outlook, which may influence investor sentiment and portfolio decisions differently for each stock.
Strengths and Weaknesses
Below is a comparative overview of the key strengths and weaknesses of Emerson Electric Co. (EMR) and Nordson Corporation (NDSN) based on the most recent data.
| Criterion | Emerson Electric Co. (EMR) | Nordson Corporation (NDSN) |
|---|---|---|
| Diversification | Broad product range including Intelligent Devices and Software and Control segments; diverse industrial exposure | Focused on advanced technology systems, industrial precision, and medical/ fluid solutions; less diversified but specialized |
| Profitability | Net margin 12.73% (favorable); ROIC 4.62% (unfavorable); company is shedding value with declining ROIC trend | Net margin 17.35% (favorable); ROIC 10.49% (favorable); company creating value though profitability is declining |
| Innovation | Moderate innovation with investments in software and control technologies | Strong innovation focus in advanced technology and precision solutions |
| Global presence | Large global industrial footprint with multiple business units | Strong international presence focused on niche industrial markets |
| Market Share | Significant market share in industrial automation and intelligent devices | Leading positions in adhesive dispensing and precision systems |
Key takeaways: Nordson shows stronger profitability and value creation despite a declining ROIC trend, supported by focused innovation and favorable financial ratios. Emerson is more diversified but struggles with profitability and value destruction, signaling caution for investors.
Risk Analysis
Below is a comparative risk assessment table for Emerson Electric Co. (EMR) and Nordson Corporation (NDSN) based on the latest 2025 data.
| Metric | Emerson Electric Co. (EMR) | Nordson Corporation (NDSN) |
|---|---|---|
| Market Risk | Beta 1.25 indicates moderate market volatility | Beta 1.03 shows slightly lower market sensitivity |
| Debt Level | Debt-to-Equity 0.65, neutral risk | Debt-to-Equity 0.69, neutral risk |
| Regulatory Risk | Moderate; operates globally with exposure to diverse regulations | Moderate; operates worldwide with regulatory oversight |
| Operational Risk | Unfavorable asset turnover and liquidity ratios (current ratio 0.88, quick ratio 0.65) indicate operational efficiency challenges | Favorable liquidity (current ratio 1.64, quick ratio 1.05) but slightly lower asset turnover |
| Environmental Risk | Exposure to industrial manufacturing and energy sectors poses medium environmental risk | Exposure to precision dispensing systems with moderate environmental impact |
| Geopolitical Risk | Global presence including volatile regions increases geopolitical exposure | Global operations but less diversified geographically, moderate geopolitical risk |
In summary, Emerson Electric faces more operational and liquidity risks, with a moderate market risk due to higher beta and some geopolitical exposure. Nordson shows stronger liquidity and financial health with lower operational risks but still carries moderate market and geopolitical risks. Investors should weigh Emerson’s operational challenges against Nordson’s higher valuation multiples and market sensitivity.
Which Stock to Choose?
Emerson Electric Co. (EMR) shows a favorable income statement with solid gross and EBIT margins, a 3% revenue growth in 2025, but a declining net margin overall. Its financial ratios are slightly unfavorable, with a low current ratio and a debt level rated neutral. The company is rated very favorably overall but displays a very unfavorable MOAT due to declining ROIC below WACC.
Nordson Corporation (NDSN) presents favorable income metrics, including a strong net margin and EBIT margin, with modest revenue growth and mostly favorable operational expense management. Its financial ratios are favorable overall, with strong profitability ratios and a good current ratio. It holds a very favorable rating and a slightly favorable MOAT despite a declining ROIC trend.
For investors focused on value creation and financial strength, Nordson’s favorable financial ratios and slightly favorable MOAT might signal a more resilient profile. Conversely, those prioritizing stable income growth might find Emerson’s consistent income statement performance and very favorable rating indicative of potential opportunities, despite its weaker MOAT.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Emerson Electric Co. and Nordson Corporation to enhance your investment decisions:
