In today’s competitive industrial landscape, Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN) stand out as key players in the machinery sector. Both companies leverage innovative technology to enhance manufacturing processes, but they focus on different aspects of the automation and dispensing markets. By comparing their market strategies, growth potential, and financial health, I aim to help you determine which company offers the most compelling investment opportunity. Let’s explore their strengths and weaknesses to make an informed choice.
Table of contents
Company Overview
Rockwell Automation, Inc. Overview
Rockwell Automation, Inc. is a leader in the industrial automation sector, specializing in providing innovative solutions that drive digital transformation across various industries. Founded in 1903 and based in Milwaukee, Wisconsin, the company operates through three main segments: Intelligent Devices, Software & Control, and Lifecycle Services. Rockwell’s product offerings include advanced hardware and software solutions that enhance operational efficiency in sectors such as automotive, semiconductor, and food and beverage. With a strong emphasis on connected systems and industry 4.0, Rockwell Automation serves its global clientele primarily through a network of independent distributors alongside its direct sales force. The company is committed to helping businesses optimize their production processes and enhance sustainability.
Nordson Corporation Overview
Nordson Corporation, established in 1935 and headquartered in Westlake, Ohio, engineers and markets products essential for dispensing and controlling a variety of materials including adhesives and coatings. The company operates two primary segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). Nordson’s offerings cater to diverse industries, providing automated systems for packaging, consumer products, and semiconductor manufacturing. The company’s focus on precision and technology enables it to meet the unique needs of its customers efficiently. Through a combination of direct sales and distribution channels, Nordson Corporation continues to expand its footprint in the global marketplace.
Key similarities and differences
Both Rockwell Automation and Nordson Corporation operate within the industrial machinery sector, focusing on automation and precision solutions. However, Rockwell specializes in a broader range of digital transformation solutions, while Nordson is more concentrated on dispensing systems for specific applications. Their business models reflect these differences, with Rockwell emphasizing connected solutions and lifecycle services, whereas Nordson focuses on precision dispensing technologies.
Income Statement Comparison
The following table provides a comparative analysis of the latest income statements for Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN), showcasing key financial metrics for the fiscal year 2025.
| Metric | Rockwell Automation, Inc. (ROK) | Nordson Corporation (NDSN) |
|---|---|---|
| Market Cap | 46.05B | 13.27B |
| Revenue | 8.34B | 2.79B |
| EBITDA | 1.40B | 0.71B |
| EBIT | 1.07B | 0.56B |
| Net Income | 0.87B | 0.48B |
| EPS | 7.69 | 8.56 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In 2025, Rockwell Automation (ROK) experienced a modest revenue increase to 8.34B, reflecting consistent growth compared to prior years, alongside a decrease in net income to 0.87B. Meanwhile, Nordson Corporation (NDSN) also showed revenue growth, reaching 2.79B, and a stable net income of 0.48B. Both companies maintained healthy EBITDA margins, indicating solid operational efficiency. However, ROK’s net income margin showed slight contraction, suggesting rising costs impacted profitability. Overall, the performance of both companies in 2025 indicates resilience in a challenging economic environment, but careful attention to cost management will be crucial moving forward.
Financial Ratios Comparison
In the following table, I present a comparison of key financial ratios for Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN) based on the latest available data.
| Metric | ROK | NDSN |
|---|---|---|
| ROE | 27.23% | 15.94% |
| ROIC | 12.39% | 9.65% |
| P/E | 32.13 | 27.10 |
| P/B | 8.75 | 4.87 |
| Current Ratio | 2.37 | 2.41 |
| Quick Ratio | 1.56 | 1.51 |
| D/E | 0.97 | 0.79 |
| Debt-to-Assets | 0.36 | 0.39 |
| Interest Coverage | 8.37 | 11.31 |
| Asset Turnover | 0.73 | 0.50 |
| Fixed Asset Turnover | 6.89 | 4.21 |
| Payout ratio | 59.95% | 34.55% |
| Dividend yield | 1.87% | 1.26% |
Interpretation of Financial Ratios
Rockwell Automation shows a strong ROE and ROIC, indicating effective management of equity and capital. However, its high P/E and P/B ratios may suggest overvaluation. In contrast, Nordson Corporation maintains a solid current and quick ratio, indicating good liquidity, but a lower interest coverage ratio raises potential concerns about debt servicing ability. Both companies exhibit healthy payout ratios, reflecting commitment to returning value to shareholders.
Dividend and Shareholder Returns
Rockwell Automation, Inc. (ROK) maintains a dividend payout ratio of approximately 39% with a yield of 1.87%. The company has demonstrated a consistent dividend per share increase, supported by positive free cash flow, although potential risks include market volatility affecting sustainability. Conversely, Nordson Corporation (NDSN) also pays dividends with a payout ratio around 30%, reflecting strong cash generation. Both companies engage in share buybacks, enhancing shareholder value. Overall, their dividend strategies appear conducive to long-term value creation.
Strategic Positioning
Rockwell Automation (ROK) holds a significant share in the industrial automation market, with a market cap of approximately 46B. Its product offerings are diversified across intelligent devices and software solutions, allowing it to effectively compete against Nordson Corporation (NDSN), which specializes in dispensing systems with a market cap of around 13B. Both companies face competitive pressure from emerging technologies and market entrants, requiring continuous innovation to maintain their positions amidst technological disruptions.
Stock Comparison
Over the past year, Rockwell Automation, Inc. (ROK) has experienced significant price movements, displaying a strong bullish trend. In contrast, Nordson Corporation (NDSN) has faced downward pressure, indicating a bearish trend. The trading dynamics of both companies illustrate differing investor sentiments and market conditions.
Trend Analysis
For Rockwell Automation, Inc. (ROK), the percentage change over the past year stands at +35.19%, indicating a bullish trend. Noteworthy high and low prices during this period were $410.23 and $227.11, respectively. The trend demonstrates acceleration, with a standard deviation of 39.91, suggesting considerable volatility in the stock’s price movements.
In the recent period from September 28, 2025, to December 14, 2025, ROK recorded a price change of +19.4% with a standard deviation of 23.67, further affirming its bullish trend.
On the other hand, Nordson Corporation (NDSN) has seen a percentage change of -6.75% over the past year, establishing a bearish trend. The stock reached a high of $278.89 and a low of $176.73, with acceleration noted in the downward movement. The standard deviation of 23.71 indicates volatility as well.
In the recent timeframe from September 28, 2025, to December 14, 2025, NDSN has shown a modest recovery with a price change of +4.11%, but it remains within a bearish context.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment towards Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN). ROK has received a “C-” rating, with analysts highlighting concerns over its low scores in return on equity and price-to-earnings metrics, suggesting a cautious stance. In contrast, NDSN boasts a “B+” rating, with a strong performance in return on assets and discounted cash flow, prompting a more favorable outlook. The consensus for ROK leans towards “sell,” while NDSN is viewed as a “buy” for 2025.
Stock Grades
I found reliable stock grades from recognized grading firms for both Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN). Below are the detailed ratings for each company.
Rockwell Automation, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-12-08 |
| Barclays | maintain | Overweight | 2025-12-04 |
| 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 |
Nordson Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2025-08-25 |
| Baird | maintain | Neutral | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-07-15 |
| Oppenheimer | upgrade | Outperform | 2025-05-30 |
| Baird | maintain | Neutral | 2025-05-30 |
| Keybanc | maintain | Overweight | 2025-04-08 |
| Keybanc | upgrade | Overweight | 2025-03-04 |
| Baird | maintain | Neutral | 2025-02-21 |
| Loop Capital | upgrade | Buy | 2025-01-22 |
| Seaport Global | upgrade | Buy | 2024-12-17 |
Overall, both companies maintain solid grades, with multiple “Outperform” and “Buy” ratings indicating positive investor sentiment. This suggests a favorable outlook for both ROK and NDSN as we move forward.
Target Prices
Based on the latest analysis, here are the target prices for Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rockwell Automation, Inc. (ROK) | 470 | 345 | 393 |
| Nordson Corporation (NDSN) | 285 | 240 | 263 |
For Rockwell Automation, the target consensus of 393 suggests a potential decline from its current price of 410.1. Meanwhile, Nordson’s consensus of 263 indicates a favorable outlook compared to its current price of 236.19, signaling potential upside.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN) based on the latest available data.
| Criterion | Rockwell Automation, Inc. (ROK) | Nordson Corporation (NDSN) |
|---|---|---|
| Diversification | High across multiple sectors | Moderate, focused on adhesives and coatings |
| Profitability | Net margin of 15.26% | Net margin of 17.35% |
| Innovation | Strong emphasis on digital solutions | Solid product development |
| Global presence | Operates internationally | Significant global reach |
| Market Share | Leading in automation solutions | Strong in dispensing systems |
| Debt level | Debt-to-equity ratio of 1.17 | Debt-to-equity ratio of 0.79 |
Key takeaways indicate that while both companies exhibit strengths in profitability and global presence, Rockwell Automation demonstrates a higher level of diversification compared to Nordson Corporation. However, Nordson shows a more favorable debt position, which could be attractive for investors focused on financial stability.
Risk Analysis
In the following table, I will outline the key risks associated with Rockwell Automation, Inc. (ROK) and Nordson Corporation (NDSN) based on the most recent fiscal data.
| Metric | Rockwell Automation, Inc. (ROK) | Nordson Corporation (NDSN) |
|---|---|---|
| Market Risk | High beta (1.499) indicates volatility in the stock price. | Moderate beta (1.016) suggests stable performance. |
| Regulatory Risk | Subject to industry regulations, potential fines. | Faces regulatory changes impacting operations. |
| Operational Risk | Dependence on supply chains and technology. | Vulnerable to production disruptions and quality issues. |
| Environmental Risk | Must comply with environmental standards and sustainability practices. | Similar obligations to minimize environmental impact. |
| Geopolitical Risk | Global operations expose to political instability. | Exposure to international trade policies and tariffs. |
Both companies face significant market risks due to their exposure to global economic conditions. Operational risks are also critical, especially given their reliance on complex supply chains. For instance, recent disruptions in logistics could heavily impact their production schedules and profitability.
Which one to choose?
When comparing Rockwell Automation (ROK) and Nordson Corporation (NDSN), the analysis reveals distinct strengths and weaknesses. ROK has shown a significant bullish trend with a price change of 35.19% over the past year, while NDSN has experienced a bearish trend, decreasing by 6.75%. In terms of financial health, NDSN boasts a B+ rating with a robust net profit margin of 17.35% and a solid return on equity of 18.76%. Conversely, ROK carries a C- rating, indicating concerns around profitability and high debt levels. For growth-oriented investors, NDSN presents a compelling case with favorable margins and a more stable outlook, while ROK might appeal to those seeking potential rebound opportunities despite its current challenges.
Investors should consider the inherent risks associated with each company, including market volatility and operational challenges in their respective sectors.
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 Nordson Corporation to enhance your investment decisions:
