Emerson Electric vs Eaton
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The short version
- 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.
| 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 |
Revenue
FY16
EMR $14.5B
ETN $0.0M
FY17
EMR $15.3B
ETN $20.4B
FY18
EMR $17.4B
ETN $21.6B
FY19
EMR $18.4B
ETN $21.4B
FY20
EMR $16.8B
ETN $17.9B
FY21
EMR $12.9B
ETN $19.6B
FY22
EMR $13.8B
ETN $20.8B
FY23
EMR $15.2B
ETN $23.2B
FY24
EMR $17.5B
ETN $24.9B
FY25
EMR $18.0B
ETN $27.4B
EMR
ETN
Operating margin
FY16
EMR —
ETN —
FY17
EMR —
ETN 15.8%
FY18
EMR —
ETN 16.8%
FY19
EMR —
ETN 17.2%
FY20
EMR —
ETN —
FY21
EMR —
ETN —
FY22
EMR —
ETN —
FY23
EMR —
ETN —
FY24
EMR —
ETN —
FY25
EMR —
ETN —
EMR
ETN
Free cash flow
FY16
EMR $2.4B
ETN $2.1B
FY17
EMR $1.4B
ETN $2.1B
FY18
EMR $2.3B
ETN $2.1B
FY19
EMR $2.4B
ETN $2.9B
FY20
EMR $2.5B
ETN $2.6B
FY21
EMR $3.2B
ETN $1.6B
FY22
EMR $2.6B
ETN $1.9B
FY23
EMR $274M
ETN $2.9B
FY24
EMR $2.9B
ETN $3.5B
FY25
EMR $2.7B
ETN $3.6B
EMR
ETN
Return on capital
FY16
EMR 15.5%
ETN 11.7%
FY17
EMR 17.0%
ETN 12.3%
FY18
EMR 20.7%
ETN 13.6%
FY19
EMR 19.8%
ETN 13.3%
FY20
EMR 17.0%
ETN 6.7%
FY21
EMR 11.4%
ETN 9.7%
FY22
EMR 10.4%
ETN 10.8%
FY23
EMR 9.4%
ETN 13.2%
FY24
EMR 6.0%
ETN 15.2%
FY25
EMR 7.6%
ETN 15.8%
EMR
ETN
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.