Analyzing Regal Rexnord (NYSE:RRX) and Reelcause (OTCMKTS:RCIT)

Regal Rexnord (NYSE:RRX) and Reelcause (OTCMKTS:RCIT) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Regal Rexnord and Reelcause’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regal Rexnord	-0.48%	9.42%	3.86%
Reelcause	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Regal Rexnord and Reelcause, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regal Rexnord	0	0	5	0	3.00
Reelcause	0	0	0	0	N/A

Regal Rexnord currently has a consensus price target of $195.60, indicating a potential upside of 30.81%. Given Regal Rexnord’s higher possible upside, analysts clearly believe Regal Rexnord is more favorable than Reelcause.

Valuation & Earnings

This table compares Regal Rexnord and Reelcause’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regal Rexnord	$6.57 billion	1.51	-$57.40 million	($0.48)	-311.52
Reelcause	N/A	N/A	N/A	N/A	N/A

Reelcause has lower revenue, but higher earnings than Regal Rexnord.

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Regal Rexnord has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Reelcause has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

Regal Rexnord beats Reelcause on 8 of the 9 factors compared between the two stocks.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.

About Reelcause

Reelcause, Inc. does not have significant operations. The company intends to pursue the direct or indirect acquisition and development of real estate assets, and/or businesses related thereto. The company was formerly known as China Green Energy Industries, Inc. and changed its name to Reelcause, Inc. in December 2014. Reelcause, Inc. is based in Las Vegas, Nevada.