In the rapidly evolving industrial machinery sector, Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) stand out as key players. Both companies focus on automation solutions, showcasing distinct strategies in innovation and market engagement. While Rockwell Automation leans towards comprehensive digital transformation, ATS emphasizes tailored automation systems and post-automation support. As an investor, understanding the nuances between these two firms is crucial. Join me as we explore which company might be the more compelling addition to your portfolio.
Table of contents
Company Overview
Rockwell Automation, Inc. Overview
Rockwell Automation, Inc. (ticker: ROK) is a leader in industrial automation and digital transformation solutions, focusing on enhancing operational efficiency for various sectors. Founded in 1903 and headquartered in Milwaukee, Wisconsin, the company operates through three main segments: Intelligent Devices, Software & Control, and Lifecycle Services. Rockwell’s offerings include an extensive range of hardware and software products, coupled with consulting and maintenance services. Its diverse clientele spans industries such as automotive, semiconductors, food and beverage, and renewable energy, highlighting its adaptability in the fast-evolving automation landscape. With a market capitalization of approximately $44.4B, Rockwell aims to drive productivity and sustainability through cutting-edge technology.
ATS Corporation Overview
ATS Corporation (ticker: ATS) specializes in automation solutions and is recognized for its comprehensive approach to manufacturing and assembly systems. Established in 1978 and based in Cambridge, Canada, ATS provides a wide array of services, including planning, design, installation, and maintenance of automated systems. The company leverages its expertise to serve key markets like life sciences, food and beverage, and consumer products. With a market cap of around $2.5B, ATS emphasizes operational efficiency and sustainability through innovative solutions, including real-time data analytics. The rebranding from ATS Automation Tooling Systems to ATS Corporation in 2022 signifies its commitment to expanding its global footprint.
Key similarities and differences
Both Rockwell Automation and ATS Corporation operate in the industrial machinery sector, providing automation solutions and services. However, Rockwell has a broader market reach with a focus on integrated hardware and software solutions, while ATS emphasizes customized automation systems and contract manufacturing services. Their approaches reflect different strategies within the automation industry, catering to various customer needs and market segments.
Income Statement Comparison
In this section, I provide a comparative analysis of the most recent income statements for Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) to help you understand their financial performance.
| Metric | Rockwell Automation (ROK) | ATS Corporation (ATS) |
|---|---|---|
| Market Cap | 44.4B | 2.5B |
| Revenue | 8.34B | 2.53B |
| EBITDA | 1.40B | 168M |
| EBIT | 1.07B | 15M |
| Net Income | 869M | -28M |
| EPS | 7.69 | -0.29 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the fiscal year 2025, Rockwell Automation exhibited robust revenue growth at 8.34B, up from 8.26B in the previous year, while achieving a net income of 869M. This reflects a stable growth trajectory, supported by a healthy EBITDA margin. Conversely, ATS faced challenges, reporting a revenue decrease from 3.03B to 2.53B, resulting in a net loss of 28M. The decline in revenue and margins indicates potential operational inefficiencies that investors should monitor closely. Overall, Rockwell’s performance demonstrates resilience, while ATS’s struggles highlight the need for strategic adjustments to improve profitability.
Financial Ratios Comparison
In the following table, I present a comparative analysis of key financial ratios for Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) based on the most recent data available for fiscal year 2025.
| Metric | ROK | ATS |
|---|---|---|
| ROE | 0.00% | -1.64% |
| ROIC | 0.00% | 0.09% |
| P/E | N/A | -125.28 |
| P/B | N/A | 2.06 |
| Current Ratio | 2.37 | 1.69 |
| Quick Ratio | 1.56 | 1.41 |
| D/E | 0.97 | 0.99 |
| Debt-to-Assets | 0.32 | 0.37 |
| Interest Coverage | N/A | 0.09 |
| Asset Turnover | 0.00 | 0.55 |
| Fixed Asset Turnover | N/A | 5.66 |
| Payout Ratio | N/A | 0.00 |
| Dividend Yield | N/A | 0.00% |
Interpretation of Financial Ratios
From the analysis, ROK indicates a robust liquidity position with a current ratio of 2.37 and quick ratio of 1.56, suggesting strong short-term financial health. However, it shows no return on equity (ROE) or invested capital (ROIC), raising concerns about profitability. On the other hand, ATS struggles with negative metrics, including a negative P/E and ROE, highlighting operational challenges. While ROK appears more stable, ATS’s underperformance signals potential risks for investors considering these stocks for their portfolios.
Dividend and Shareholder Returns
Rockwell Automation (ROK) has a dividend payout ratio of approximately 60% and an annual yield of about 1.87%, reflecting a commitment to returning value to shareholders while maintaining adequate coverage by free cash flow. In contrast, ATS Corporation (ATS) does not pay dividends, likely due to its reinvestment strategy aimed at growth in its high-development phase. Both companies engage in share buybacks, but ROK’s dividends appear more sustainable for long-term shareholder value creation compared to ATS’s focus on future investments.
Strategic Positioning
Rockwell Automation, Inc. (ROK) holds a significant market share in the industrial automation sector, leveraging its strong portfolio in intelligent devices and software solutions. With a market cap of $44.4B, ROK faces competitive pressure from ATS Corporation (ATS), which, with a market cap of $2.5B, is also carving out a niche in automation solutions. Both companies are navigating technological disruptions, focusing on digital transformation to enhance efficiency and performance in manufacturing and assembly systems.
Stock Comparison
In this section, I will analyze the stock price movements of Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) over the past year, highlighting key trading dynamics and price fluctuations.
Trend Analysis
Rockwell Automation, Inc. (ROK) Over the past year, ROK has experienced a significant price change of +29.77%, indicating a bullish trend. The highest price recorded was 395.86, while the lowest was 227.11. The trend shows acceleration, supported by a standard deviation of 36.69, reflecting notable volatility. In the recent period from September 14, 2025, to November 30, 2025, ROK’s price increased by 14.77%, with a standard deviation of 17.78, indicating a strong upward movement.
ATS Corporation (ATS) In contrast, ATS has faced a challenging year with a price change of -37.73%, marking a bearish trend. The stock’s highest price was 43.82, and the lowest was 23.5. The trend has shown deceleration, with a standard deviation of 4.45, suggesting reduced volatility. During the recent analysis period from September 14, 2025, to November 30, 2025, ATS experienced a decline of -6.39%, with a standard deviation of 1.0, indicating a slight downward slope.
In summary, ROK presents a strong bullish outlook, while ATS continues to struggle with a bearish trajectory.
Analyst Opinions
Recent analyst recommendations indicate a cautious stance on both Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS). ROK holds a rating of C- from analysts, reflecting concerns over its financial metrics, particularly its return on equity and asset management. Conversely, ATS received a C rating, suggesting a slightly better outlook but still indicating room for improvement in profitability and efficiency. The consensus for both companies leans towards holding rather than buying or selling, as analysts recommend monitoring their performance closely before making any significant investment decisions.
Stock Grades
The following are the latest stock ratings for Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) based on data from recognized grading companies.
Rockwell Automation, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | Maintain | Outperform | 2025-11-21 |
| B of A Securities | Maintain | Buy | 2025-11-20 |
| JP Morgan | Maintain | Neutral | 2025-11-11 |
| Morgan Stanley | Maintain | Overweight | 2025-11-10 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-07 |
| Barclays | Maintain | Overweight | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-10-15 |
| Oppenheimer | Maintain | Outperform | 2025-10-14 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-06 |
| Barclays | Maintain | Overweight | 2025-08-14 |
ATS Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2024-08-13 |
| Goldman Sachs | Maintain | Sell | 2024-08-13 |
| JP Morgan | Maintain | Neutral | 2024-05-24 |
In summary, Rockwell Automation maintains a strong outlook with multiple “Outperform” and “Overweight” ratings from various analysts, indicating confidence in the company’s growth potential. Conversely, ATS Corporation shows a mixed sentiment, with a “Sell” rating from Goldman Sachs suggesting caution among investors.
Target Prices
The current target prices reflect a consensus among analysts for Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rockwell Automation, Inc. | 402 | 345 | 377.6 |
| ATS Corporation | 34 | 34 | 34 |
Analysts expect Rockwell Automation (ROK) to reach a consensus target of 377.6, slightly above its current price of 395.86. For ATS, the target consensus aligns perfectly with its current price of 25.51, indicating stability in expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS) based on the most recent data.
| Criterion | Rockwell Automation (ROK) | ATS Corporation (ATS) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Profit Margin: 15.26%) | Weak (Net Profit Margin: -1.11%) |
| Innovation | High (Focus on Automation) | Moderate |
| Global presence | Strong (International Operations) | Moderate (Primarily in North America) |
| Market Share | Significant | Growing |
| Debt level | Moderate (Debt-to-Equity: 1.17) | High (Debt-to-Equity: 0.99) |
Key takeaways include Rockwell Automation’s strong profitability and global presence, showcasing its robust market position, while ATS Corporation faces challenges in profitability and a higher debt level, indicating a need for careful management and strategic focus.
Risk Analysis
The following table outlines the key risks associated with Rockwell Automation, Inc. and ATS Corporation, providing a clear view of potential challenges these companies may face.
| Metric | Rockwell Automation, Inc. (ROK) | ATS Corporation (ATS) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In summarizing the risks, I observe that ATS Corporation faces higher operational and market risks, potentially impacting its profitability. Rockwell Automation, while facing moderate risks, has a strong market presence that could mitigate these challenges.
Which one to choose?
When comparing Rockwell Automation, Inc. (ROK) and ATS Corporation (ATS), ROK demonstrates stronger fundamentals with a significant market cap of approximately 30.6B and consistent revenue growth, reflected in its bullish stock trend with a 14.77% price increase recently. ROK maintains a healthy gross profit margin of 44.5% and a net income margin of 11.5%, indicating robust profitability. In contrast, ATS, with a market cap of around 3.5B, struggles with a bearish trend, showing a -37.73% price change. Its margins are notably lower, with a gross profit margin of 25.5% and a negative net income margin.
For investors prioritizing growth and profitability, ROK appears to be the more favorable choice. However, those seeking a higher-risk, potentially higher-reward investment might consider ATS, despite its current challenges.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Rockwell Automation, Inc. and ATS Corporation to enhance your investment decisions:
