Emerson Electric vs Eaton
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KIRA’s take AI analyst
I put Emerson Electric and Eaton side by side, using each one’s latest annual report. Here is what stands out:
- Eaton is the larger business, with $27.4B of revenue in fiscal 2025 against $18.0B for Emerson Electric, about 1.5 times as much.
- Eaton grew revenue faster (10.3%, against 3.0%).
- Emerson Electric turned more of its sales into free cash flow (14.8% FCF margin, against 12.9%).
- Eaton earned a higher return on the capital invested in it (15.8%, against 7.6%).
- Investors pay more for each dollar of Eaton’s earnings: a P/E of 37.2x against 35.4x for Emerson Electric.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Emerson Electric
EMR
2/10
Gross marginFCF margin
Eaton
ETN
7/10
Revenue growth5-year growthNet marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | EMR FY25 | ETN FY25 |
|---|---|---|
| Size | ||
| Market cap | $90.7B | $142.6B |
| Revenue | $18.0B | $27.4B |
| Free cash flow | $2.7B | $3.6B |
| Net income | $2.3B | $4.1B |
| Growth | ||
| Revenue growth | 3.0% | 10.3% |
| 5-year growth | 1.4% | 9.0% |
| Share count change | −1.3% | −2.1% |
| Profitability | ||
| Gross margin | 52.8% | 37.6% |
| Operating margin | — | — |
| Net margin | 12.7% | 14.9% |
| FCF margin | 14.8% | 12.9% |
| Return on capital | 7.6% | 15.8% |
| Return on equity | 10.9% | 21.6% |
| Balance sheet | ||
| Net debt | $11.6B | $9.1B |
| Net debt / EBITDA | 2.5x | 1.5x |
| Dividends and buybacks | $2.4B | $3.5B |
| Valuation & quality | ||
| P/E | 35.4x | 37.2x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.