Home > Comparison > Industrials > ROK vs PNR
The strategic rivalry between Rockwell Automation, Inc. and Pentair plc shapes the industrial machinery sector’s evolution. Rockwell Automation leads with a diversified, digital transformation-driven model, blending hardware, software, and lifecycle services. Pentair focuses on specialized water solutions, emphasizing consumer and industrial fluid technologies. This head-to-head contrasts broad industrial innovation against niche market leadership. This analysis aims to identify which company presents the superior risk-adjusted growth potential for a balanced portfolio in 2026.
Table of contents
Companies Overview
Rockwell Automation and Pentair plc are key players in the industrial machinery sector, each commanding distinct market niches.
Rockwell Automation, Inc.: Industrial Automation Pioneer
Rockwell Automation dominates the industrial automation market with its three-pronged revenue model: Intelligent Devices, Software & Control, and Lifecycle Services. Its core strength lies in combining hardware and software to drive digital transformation across discrete, hybrid, and process industries. In 2026, the company sharpened its strategic focus on advanced digital twin and simulation software to enhance operational efficiency for clients worldwide.
Pentair plc: Global Water Solutions Leader
Pentair plc specializes in water treatment and fluid management solutions, operating through Consumer Solutions and Industrial & Flow Technologies segments. It generates revenue by designing and selling residential and commercial pool equipment alongside advanced filtration and fluid handling systems. In 2026, Pentair emphasized expanding its membrane filtration offerings to address growing global water quality and sustainability demands.
Strategic Collision: Similarities & Divergences
Both companies excel in industrial machinery, yet Rockwell automates complex processes through integrated digital solutions while Pentair focuses on water and fluid control technologies. Their primary battleground is efficiency-driven industries seeking sustainability and automation. Rockwell’s software-heavy model contrasts with Pentair’s hardware-centric water technologies, presenting distinct investment profiles centered on digital transformation versus environmental infrastructure.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Rockwell Automation, Inc. (ROK) | Pentair plc (PNR) |
|---|---|---|
| Revenue | 8.34B | 4.18B |
| Cost of Revenue | 4.33B | 2.49B |
| Operating Expenses | 2.59B | 833M |
| Gross Profit | 4.02B | 1.69B |
| EBITDA | 1.40B | 944M |
| EBIT | 1.07B | 826M |
| Interest Expense | 156M | 69M |
| Net Income | 869M | 654M |
| EPS | 7.69 | 3.99 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs a more efficient and profitable corporate engine over recent years.
Rockwell Automation, Inc. Analysis
Rockwell Automation’s revenue climbed 19% from 2021 to 2025, peaking at $8.34B in 2025. However, net income fell 36% over the same period, dropping to $867M. Its gross margin stands strong at 48.1%, but net margin deteriorated 46% overall, signaling rising costs and pressure on profitability despite solid revenue growth.
Pentair plc Analysis
Pentair’s revenue grew 11% from 2021 to 2025, reaching $4.18B last year. Net income increased 18%, hitting $650M in 2025. The company boasts a healthy gross margin of 40.5% and an impressive 15.7% net margin, with consistent margin expansion and positive earnings momentum, reflecting improved operational efficiency and disciplined cost control.
Margin Strength vs. Profit Growth
Rockwell Automation drives higher revenues but suffers declining net income and shrinking margins, showing efficiency challenges. Pentair delivers steadier profit growth and expanding margins on a smaller revenue base, highlighting superior cost management. Pentair’s profile appeals more to investors seeking sustainable profitability over pure top-line scale.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared:
| Ratios | Rockwell Automation (ROK) | Pentair plc (PNR) |
|---|---|---|
| ROE | 23.78% | 16.90% |
| ROIC | 13.71% | 12.46% |
| P/E | 45.33 | 26.14 |
| P/B | 10.78 | 4.42 |
| Current Ratio | 1.14 | 1.61 |
| Quick Ratio | 0.77 | 0.95 |
| D/E (Debt-to-Equity) | 1.00 | 0.42 |
| Debt-to-Assets | 32.51% | 23.86% |
| Interest Coverage | 9.12 | 12.36 |
| Asset Turnover | 0.74 | 0.61 |
| Fixed Asset Turnover | 6.95 | 11.08 |
| Payout Ratio | 68.01% | 25.13% |
| Dividend Yield | 1.50% | 0.96% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, revealing operational excellence and hidden risks that shape investment decisions and long-term value creation.
Rockwell Automation, Inc.
Rockwell Automation exhibits strong profitability with a 23.78% ROE and a solid 10.42% net margin, signaling efficient core operations. However, its valuation appears stretched with a high P/E of 45.33 and P/B of 10.78. The company delivers a modest 1.5% dividend yield, balancing shareholder returns with reinvestment in R&D for growth.
Pentair plc
Pentair shows a robust 15.66% net margin and a respectable 16.9% ROE, reflecting operational efficiency. Its valuation is more moderate, with a P/E of 26.14 and P/B of 4.42, though both remain on the higher side. Pentair maintains a low 0.96% dividend yield, indicating a cautious approach to shareholder returns while preserving financial strength.
Premium Valuation vs. Operational Safety
Rockwell Automation commands a premium valuation but offers higher returns on equity and marginally better profitability. Pentair provides a more balanced risk profile with solid margins and stronger balance sheet ratios. Investors seeking growth with operational safety may lean toward Pentair’s steadier metrics over Rockwell’s stretched valuation.
Which one offers the Superior Shareholder Reward?
I find Rockwell Automation (ROK) offers a more attractive total shareholder return than Pentair (PNR) in 2026. ROK yields ~1.5% with a higher payout ratio (~68%), supported by strong free cash flow coverage (~88%). Its buyback program is robust, enhancing shareholder value. PNR’s yield is lower (~0.9%), with a conservative payout (~25%) and smaller buybacks, reflecting a cautious distribution. ROK balances dividends and buybacks sustainably, while PNR prioritizes reinvestment and moderate returns. For income-focused investors seeking both yield and capital return, ROK leads in shareholder reward.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Rockwell Automation, Inc. and Pentair plc, highlighting their financial strengths and valuation differences:
Rockwell Automation excels in return on equity (ROE 5 vs. 4) and return on assets (ROA 4 vs. 5), showing operational efficiency. Pentair boasts a stronger debt-to-equity profile (2 vs. 1) and better valuation scores (P/E and P/B both 2 vs. 1). Rockwell’s profile is skewed toward profitability but carries financial risk. Pentair offers a more balanced financial health and valuation mix.
Bankruptcy Risk: Solvency Showdown
Rockwell Automation’s Altman Z-Score of 5.62 surpasses Pentair’s 4.21, placing both safely above distress levels but affirming Rockwell’s stronger solvency buffer in this cycle:
Financial Health: Quality of Operations
Both Rockwell Automation and Pentair score an 8 on the Piotroski F-Score, indicating very strong financial health and operational quality. Neither shows internal red flags, underscoring robust fundamentals:
How are the two companies positioned?
This section dissects the operational DNA of Rockwell Automation and Pentair by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Rockwell Automation, Inc. and Pentair plc diversify their income streams and reveals their primary sector bets for strategic positioning:
Rockwell Automation anchors revenue in Intelligent Devices at $3.76B, with Software & Control and Lifecycle Services close behind, signaling a balanced, tech-driven portfolio. Pentair leans on Industrial & Flow Technologies ($1.51B) and Pool ($1.44B) segments, showing moderate diversification but heavier reliance on core water and flow solutions. Rockwell’s mix supports ecosystem lock-in through integrated solutions, while Pentair faces some concentration risk in cyclical end markets.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Rockwell Automation, Inc. and Pentair plc:
ROK Strengths
- Diversified revenue streams across Intelligent Devices, Lifecycle Services, and Software segments
- Strong profitability with 23.78% ROE and 13.71% ROIC
- Favorable interest coverage at 6.88 supports financial stability
- Global presence with significant sales in North America, EMEA, and Asia Pacific
PNR Strengths
- Higher net margin at 15.66% and solid ROIC of 12.46% reflect operational efficiency
- Strong balance sheet with low debt-to-assets at 23.86% and favorable debt/equity ratio of 0.42
- Robust interest coverage ratio of 11.9 enhances creditworthiness
- Global footprint with substantial US and diversified international sales
ROK Weaknesses
- Elevated valuation multiples: P/E at 45.33 and P/B at 10.78, indicating expensive stock price
- Quick ratio at 0.77 suggests liquidity constraints
- WACC exceeds ROIC, posing capital allocation concerns
- Heavy reliance on North American market could limit growth
PNR Weaknesses
- P/E of 26.14 and P/B of 4.42 remain high relative to sector averages
- Dividend yield of 0.96% is below typical investor expectations
- Quick ratio at 0.95 is only neutral, signaling moderate liquidity
- Less diversified revenue base compared to peers
Both companies show strong profitability and global reach but face valuation and liquidity challenges. ROK’s higher valuation and liquidity ratios warrant caution, while PNR’s financial strength and lower leverage provide a sounder base despite some valuation concerns. These factors will influence each company’s strategic focus on growth and capital management.
The Moat Duel: Analyzing Competitive Defensibility
Only a structural moat shields long-term profits from relentless competitive erosion. Let’s dissect the core moats of Rockwell Automation and Pentair:
Rockwell Automation, Inc.: Innovation-Driven Network Effects
Rockwell Automation leverages network effects through integrated automation solutions, reflected in a strong ROIC 3.18% above WACC and rising profitability. New digital products in 2026 could deepen this moat amid global industrial demand.
Pentair plc: Cost Advantage in Water Solutions
Pentair’s moat centers on cost advantage via scale in water filtration and pumping systems. Its ROIC exceeds WACC by 3.40%, but declining ROIC signals margin pressure. Expansion in developing markets may offer growth, yet competition intensifies.
Verdict: Network Effects vs. Cost Leadership
Rockwell’s growing ROIC and product ecosystem form a deeper moat than Pentair’s cost advantage, which suffers from margin contraction. I see Rockwell better positioned to defend market share long term.
Which stock offers better returns?
The past year shows Rockwell Automation surging over 53%, while Pentair posts a more modest 21% rise, with both stocks exhibiting distinct momentum shifts and trading volumes.
Trend Comparison
Rockwell Automation (ROK) displays a strong bullish trend with a 53.26% price gain over 12 months. The acceleration in price movement and a high volatility of 50.24 underline dynamic market interest.
Pentair (PNR) also trends bullish, gaining 20.65% over the same period. However, this growth shows deceleration and lower volatility at 10.7, indicating a more tempered price advance.
Comparing both, Rockwell Automation outperforms Pentair with a significantly higher price increase and accelerating momentum over the past year.
Target Prices
Analysts present a clear consensus on target prices for Rockwell Automation, Inc. and Pentair plc, reflecting moderate upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Rockwell Automation, Inc. | 380 | 470 | 421.57 |
| Pentair plc | 90 | 135 | 120 |
Rockwell Automation’s consensus target of 421.57 sits slightly below its current price of 430.08, suggesting limited near-term upside. Pentair’s consensus target at 120 implies a robust 23% gain from its current 97.3, indicating stronger analyst optimism.
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How do institutions grade them?
This section compares recent institutional grades for Rockwell Automation, Inc. and Pentair plc:
Rockwell Automation, Inc. Grades
The following table summarizes recent grades from major financial institutions for Rockwell Automation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Downgrade | Perform | 2026-01-20 |
| JP Morgan | Maintain | Neutral | 2026-01-16 |
| Morgan Stanley | Maintain | Overweight | 2026-01-13 |
| Barclays | Maintain | Overweight | 2026-01-07 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-07 |
| Goldman Sachs | Upgrade | Neutral | 2025-12-16 |
| Jefferies | Maintain | Buy | 2025-12-10 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Barclays | Maintain | Overweight | 2025-12-04 |
| Baird | Maintain | Outperform | 2025-11-21 |
Pentair plc Grades
The following table summarizes recent grades from major financial institutions for Pentair:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2026-02-04 |
| Citigroup | Maintain | Buy | 2026-02-04 |
| JP Morgan | Maintain | Overweight | 2026-01-16 |
| Citigroup | Maintain | Buy | 2026-01-12 |
| BNP Paribas Exane | Downgrade | Underperform | 2026-01-07 |
| TD Cowen | Downgrade | Sell | 2026-01-05 |
| Jefferies | Upgrade | Buy | 2025-12-10 |
| Barclays | Downgrade | Equal Weight | 2025-12-04 |
| Oppenheimer | Maintain | Outperform | 2025-11-20 |
| RBC Capital | Maintain | Outperform | 2025-10-22 |
Which company has the best grades?
Pentair holds a higher concentration of “Outperform” and “Buy” ratings than Rockwell Automation. Rockwell shows more mixed signals, including downgrades and neutral grades. Investors may view Pentair’s stronger consensus grades as a signal of more positive institutional sentiment.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Rockwell Automation, Inc.
- Faces intense competition in industrial automation with high innovation demands.
Pentair plc
- Competes globally in water solutions with strong brand portfolios but niche exposure.
2. Capital Structure & Debt
Rockwell Automation, Inc.
- Moderate leverage with debt-to-assets at 32.5%; interest coverage is adequate but debt-to-equity score very unfavorable.
Pentair plc
- Lower leverage at 23.9%; better debt-to-equity score and stronger interest coverage, indicating solid balance sheet.
3. Stock Volatility
Rockwell Automation, Inc.
- Higher beta at 1.53 signals above-market volatility and greater sensitivity to economic cycles.
Pentair plc
- Beta of 1.22 suggests moderate volatility, more stable relative to Rockwell Automation.
4. Regulatory & Legal
Rockwell Automation, Inc.
- Subject to complex regulations in multiple industrial sectors and cybersecurity compliance risks.
Pentair plc
- Faces water quality and environmental regulations, plus international trade compliance challenges.
5. Supply Chain & Operations
Rockwell Automation, Inc.
- Complex global supply chain with exposure to semiconductor shortages and logistics disruptions.
Pentair plc
- Supply chain focused on manufacturing water treatment components, somewhat insulated but sensitive to raw material costs.
6. ESG & Climate Transition
Rockwell Automation, Inc.
- Increasing pressure to reduce carbon footprint in energy-intensive industrial solutions.
Pentair plc
- Strong ESG demands due to water sustainability focus; climate transition risks are material but also present growth opportunities.
7. Geopolitical Exposure
Rockwell Automation, Inc.
- Significant U.S.-centric operations with international sales; exposed to trade tensions and tariffs.
Pentair plc
- UK-based with global operations; currency fluctuations and Brexit-related regulatory shifts pose risks.
Which company shows a better risk-adjusted profile?
Pentair’s lower leverage and more favorable capital structure reduce its financial risk significantly. Rockwell Automation’s higher stock volatility and debt levels add pressure despite strong profitability. Pentair’s stable beta and robust interest coverage enhance its resilience. Conversely, Rockwell’s diversified industrial exposure and innovation-driven growth carry operational complexity risks. The most impactful risk for Rockwell is its stretched valuation paired with high financial leverage. For Pentair, regulatory and ESG compliance demands in its water solutions segment represent the key challenge. Overall, Pentair presents a better risk-adjusted profile, supported by a 57% favorable ratio rating versus Rockwell’s 36%, and a safer balance sheet reflected in its Altman Z-score of 4.21 compared to Rockwell’s 5.62, signaling both are safe but Pentair’s metrics are more balanced.
Final Verdict: Which stock to choose?
Rockwell Automation’s superpower lies in its ability to create sustained economic value, demonstrated by a very favorable moat and growing profitability. Its point of vigilance is the stretched valuation and weaker liquidity, signaling potential volatility. It fits well in an aggressive growth portfolio that can tolerate cyclical swings.
Pentair offers a solid strategic moat through consistent value creation and superior financial stability, highlighted by a safer balance sheet and favorable income growth. Its conservative risk profile suits growth-at-a-reasonable-price investors seeking steadier returns amid market uncertainties.
If you prioritize dynamic value creation with higher growth potential, Rockwell Automation outshines due to its expanding moat and bullish momentum. However, if you seek better stability and a more conservative balance sheet, Pentair offers an attractive scenario with less valuation risk and a steady income profile.
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 Rockwell Automation, Inc. and Pentair plc to enhance your investment decisions:
