In the competitive landscape of the industrial machinery sector, Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) stand out as two leading players. Both companies operate in overlapping markets, focusing on innovative automation solutions, yet they have distinct approaches and product offerings. Rockwell’s expertise lies in industrial automation and digital transformation, while Hillenbrand diversifies into various sectors, including advanced process solutions and funeral services. Join me as we explore which company presents the most compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Rockwell Automation, Inc. Overview
Rockwell Automation, Inc. is a leading provider of industrial automation and digital transformation solutions, primarily servicing the manufacturing sector. Founded in 1903 and headquartered in Milwaukee, Wisconsin, the company operates in three segments: Intelligent Devices, Software & Control, and Lifecycle Services. Its diverse range of offerings includes hardware and software products tailored to various industries, such as automotive, semiconductor, and food and beverage. Rockwell’s innovative solutions empower businesses to enhance operational efficiency and leverage advanced technologies for smart manufacturing. With a robust market capitalization of approximately $44.4B, Rockwell is well-positioned in the industrial machinery sector, making it a crucial player in the shift towards digital industrial transformation.
Hillenbrand, Inc. Overview
Hillenbrand, Inc., established in 1906 and based in Batesville, Indiana, is a diversified industrial company that operates in three primary segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville. The company specializes in designing and manufacturing equipment and systems for a wide array of industries, including plastics, food, pharmaceuticals, and funeral services. Hillenbrand’s market capitalization stands at around $2.2B, highlighting its significant presence in the industrial machinery space. The company is committed to delivering innovative solutions that cater to the evolving needs of its customers, particularly in process and material handling, as well as memorialization products.
Key similarities and differences
Both Rockwell Automation and Hillenbrand operate within the industrial machinery sector and focus on providing innovative solutions to their respective markets. However, while Rockwell emphasizes automation and digital transformation across various manufacturing industries, Hillenbrand diversifies its portfolio by incorporating equipment for both industrial processes and funeral services, showcasing a broader market application.
Income Statement Comparison
The following table compares the most recent income statements of Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) for the fiscal year ending September 30, 2025.
| Metric | Rockwell Automation, Inc. (ROK) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Cap | 44.5B | 2.24B |
| Revenue | 8.34B | 2.67B |
| EBITDA | 1.40B | 230M |
| EBIT | 1.07B | 92M |
| Net Income | 869M | 43M |
| EPS | 7.69 | 0.74 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In 2025, Rockwell Automation demonstrated strong revenue growth, reaching 8.34B, an increase from 8.26B in 2024. However, Hillenbrand’s revenue declined from 3.18B to 2.67B, indicating potential challenges. Rockwell’s net income of 869M reflects solid profitability, whereas Hillenbrand posted a much lower net income of 43M. The EBITDA margins for Rockwell indicate operational efficiency, while Hillenbrand’s reduced EBITDA suggests cost management issues. Overall, Rockwell Automation’s performance showcases resilience and growth, contrasting sharply with Hillenbrand’s struggles.
Financial Ratios Comparison
The following table compares key financial metrics and ratios for Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) as of 2025.
| Metric | ROK | HI |
|---|---|---|
| ROE | 0.00 | 0.037 |
| ROIC | 0.00 | -0.326 |
| P/E | 0 | 36.69 |
| P/B | 0 | 1.34 |
| Current Ratio | 2.37 | 1.22 |
| Quick Ratio | 1.56 | 0.88 |
| D/E | 0.97 | 1.12 |
| Debt-to-Assets | 0.32 | 0.36 |
| Interest Coverage | 0 | 0.55 |
| Asset Turnover | 0.00 | 0.60 |
| Fixed Asset Turnover | 0.00 | 7.80 |
| Payout ratio | 0 | 1.22 |
| Dividend yield | 0 | 3.32% |
Interpretation of Financial Ratios
The ratios indicate that ROK is currently struggling, as evidenced by its zero values in critical areas such as ROE, P/E, and interest coverage, suggesting potential financial distress. Meanwhile, HI displays a reasonable current ratio and a positive dividend yield, though it has a negative return on invested capital and a high debt-to-equity ratio, indicating increased financial risk. Investors should exercise caution when considering these companies for their portfolios, as both face notable challenges.
Dividend and Shareholder Returns
Rockwell Automation, Inc. (ROK) has a dividend yield of 1.87% for 2025, with a payout ratio of 60%. This suggests a sustainable dividend policy supported by free cash flow, though investors should be mindful of potential risks related to market volatility. Conversely, Hillenbrand, Inc. (HI) does not pay dividends, likely due to its focus on reinvestment for growth and R&D. However, it engages in share buybacks, indicating a commitment to returning value to shareholders. Overall, ROK’s approach seems more aligned with stable long-term value creation compared to HI’s growth-oriented strategy.
Strategic Positioning
Rockwell Automation, Inc. (ROK) holds a significant market share in the industrial automation sector, leveraging its comprehensive solutions across intelligent devices and software. With a market cap of approximately $44.4B, it faces competitive pressure from emerging technologies and rivals like Hillenbrand, Inc. (HI), which, despite a smaller market cap of around $2.2B, offers diversified industrial solutions that could disrupt market dynamics. As technological advancements accelerate, both companies must adapt strategically to maintain their positions.
Stock Comparison
In this section, I will examine the weekly stock price movements and trading dynamics for Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) over the past year, highlighting key price movements and trends.
Trend Analysis
For Rockwell Automation, Inc. (ROK), the overall price change over the past year is +29.77%. This indicates a bullish trend as the percentage change exceeds +2%. The stock has experienced notable highs of 395.86 and lows of 227.11, demonstrating strong acceleration in the upward trend. The standard deviation of 36.69 suggests the stock has experienced significant volatility, but the overall pattern is clearly upward.
In the recent trend period from September 14, 2025, to November 30, 2025, ROK recorded a price change of +14.77%. This further supports the bullish outlook, with a trend slope of 4.57 indicating continued acceleration.
Conversely, Hillenbrand, Inc. (HI) has seen a price change of -29.48% over the last year, categorizing it as a bearish trend. The stock reached a high of 50.29 and a low of 18.75, also showing acceleration in its downward trajectory. The standard deviation of 9.44 indicates lower volatility compared to ROK.
In the recent trend from September 14, 2025, to November 30, 2025, HI experienced a price change of +29.59%. Although this uptick may seem positive, it does not negate the overall bearish trend established over the past year. The trend slope of 0.8 indicates a very gradual acceleration.
In summary, ROK is on a bullish trajectory with significant upward momentum, while HI remains in a bearish phase despite recent positive movements.
Analyst Opinions
Recent analyst recommendations for Rockwell Automation, Inc. (ROK) show a cautious outlook with a rating of C-. Analysts highlight concerns over low scores in return on equity and debt-to-equity ratios. Conversely, Hillenbrand, Inc. (HI) has received a more favorable rating of B+, with strong performance in return on assets and discounted cash flow. The consensus for ROK suggests a hold, while HI leans towards a buy due to its solid fundamentals. As an investor, I would weigh these insights carefully before making any decisions.
Stock Grades
As we assess the current stock ratings for Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI), we see a mix of maintained grades that reflect stability in their investment outlook.
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 |
Hillenbrand, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | maintain | Neutral | 2025-11-20 |
| DA Davidson | maintain | Neutral | 2025-10-16 |
| CJS Securities | downgrade | Market Perform | 2025-10-16 |
| Keybanc | downgrade | Sector Weight | 2025-05-08 |
| DA Davidson | maintain | Neutral | 2025-05-01 |
| DA Davidson | maintain | Neutral | 2024-11-15 |
| Keybanc | maintain | Overweight | 2024-11-14 |
| DA Davidson | downgrade | Neutral | 2024-08-12 |
| DA Davidson | maintain | Buy | 2021-02-08 |
| DA Davidson | maintain | Buy | 2021-02-07 |
Overall, Rockwell Automation maintains a robust set of grades from various analysts, suggesting a positive outlook for investors. In contrast, Hillenbrand reflects more volatility with recent downgrades, indicating a cautious approach may be warranted. I recommend paying close attention to these trends when considering investments in these stocks.
Target Prices
The consensus target prices for Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) reflect varying degrees of analyst optimism.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rockwell Automation | 402 | 345 | 377.6 |
| Hillenbrand, Inc. | 32 | 32 | 32 |
For Rockwell Automation, the consensus target of 377.6 suggests a slight upside potential considering the current stock price of 395.86. In contrast, Hillenbrand’s consensus aligns closely with its current price of 31.84, indicating a more stable outlook.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI) based on various criteria.
| Criterion | Rockwell Automation, Inc. (ROK) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Diversification | Strong presence across various industrial sectors | Moderate diversification, mainly focused on industrial machinery and funeral services |
| Profitability | High net profit margin of 15.3% | Low net profit margin of 1.9% |
| Innovation | Strong investment in R&D, with a focus on automation technology | Limited innovation in product offerings |
| Global presence | Extensive global reach with a robust distribution network | Primarily U.S.-focused, limited international exposure |
| Market Share | Leading player in industrial automation | Smaller market share in niche segments |
| Debt level | Moderate debt-to-equity ratio of 1.17 | Higher debt-to-equity ratio of 1.45 |
Key takeaways from this analysis include Rockwell Automation’s strong profitability and innovation compared to Hillenbrand’s higher debt and limited market presence. Investors should weigh these factors when considering their options.
Risk Analysis
The table below summarizes the key risks associated with Rockwell Automation, Inc. and Hillenbrand, Inc.
| Metric | Rockwell Automation, Inc. (ROK) | Hillenbrand, Inc. (HI) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | Moderate |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and regulatory risks, particularly in the current global economic environment. Rockwell Automation is particularly exposed to geopolitical tensions impacting supply chains, while Hillenbrand deals with higher regulatory scrutiny affecting operations.
Which one to choose?
In evaluating Rockwell Automation, Inc. (ROK) and Hillenbrand, Inc. (HI), both companies exhibit distinct financial strengths and weaknesses. ROK shows a strong revenue trend with an impressive net income of 869M for FY 2025, yet its profitability ratios such as net profit margin are lower compared to HI’s 2.9% improvement in recent earnings. ROK’s stock trend has been bullish, with a price change of 29.77%, while HI’s trend is bearish, declining by 29.48%.
Analyst ratings reflect this divergence, giving ROK a C- rating against HI’s B+, indicating a preference for HI in terms of overall financial health. However, ROK’s growth potential may attract investors seeking higher returns.
Recommendation: Investors focused on growth may prefer ROK, while those prioritizing stability and consistent returns may favor HI.
Specific risks include market dependence and competitive pressures affecting both companies’ future performance.
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 Hillenbrand, Inc. to enhance your investment decisions:
