Comparing Regal Rexnord (NYSE:RRX) and Palladyne AI (NASDAQ:PDYN)

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

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 26.0% of Palladyne AI shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by insiders. Comparatively, 12.0% of Palladyne AI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Regal Rexnord has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Palladyne AI has a beta of 3.36, indicating that its share price is 236% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Regal Rexnord and Palladyne AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regal Rexnord	0	1	5	0	2.83
Palladyne AI	0	0	0	0	N/A

Regal Rexnord presently has a consensus target price of $188.00, indicating a potential upside of 24.50%. Given Regal Rexnord’s higher probable upside, equities analysts plainly believe Regal Rexnord is more favorable than Palladyne AI.

Profitability

This table compares Regal Rexnord and Palladyne AI’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%
Palladyne AI	-1,390.02%	-74.87%	-57.30%

Valuation and Earnings

This table compares Regal Rexnord and Palladyne AI’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regal Rexnord	$6.25 billion	1.61	-$57.40 million	($0.48)	-314.58
Palladyne AI	$6.15 million	8.43	-$115.59 million	($3.94)	-0.49

Regal Rexnord has higher revenue and earnings than Palladyne AI. Regal Rexnord is trading at a lower price-to-earnings ratio than Palladyne AI, indicating that it is currently the more affordable of the two stocks.

Summary

Regal Rexnord beats Palladyne AI on 9 of the 13 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 Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.