Head-To-Head Review: Regal Rexnord (NYSE:RRX) versus China Energy Recovery (OTCMKTS:CGYV)

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

Risk and Volatility

Regal Rexnord has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, China Energy Recovery has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by insiders. Comparatively, 37.7% of China Energy Recovery shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Regal Rexnord and China Energy Recovery’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%
China Energy Recovery	N/A	N/A	N/A

Valuation and Earnings

This table compares Regal Rexnord and China Energy Recovery’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	$6.25 billion	1.49	-$57.40 million	($0.48)	-292.50
China Energy Recovery	N/A	N/A	N/A	N/A	N/A

China Energy Recovery has lower revenue, but higher earnings than Regal Rexnord.

Analyst Ratings

This is a summary of current ratings for Regal Rexnord and China Energy Recovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regal Rexnord	0	0	5	0	3.00
China Energy Recovery	0	0	0	0	N/A

Regal Rexnord currently has a consensus price target of $192.00, indicating a potential upside of 36.75%. Given Regal Rexnord’s higher possible upside, equities analysts plainly believe Regal Rexnord is more favorable than China Energy Recovery.

Summary

Regal Rexnord beats China Energy Recovery on 6 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 China Energy Recovery

China Energy Recovery, Inc. designs, manufactures, installs, and services waste heat recovery systems in China. The company's energy recovery systems capture industrial waste energy to produce electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate saleable emissions credits. It serves petrochemical, paper manufacturing, refining/power generation, coke processing, cement, and steel industries. The company was incorporated in 1998 and is headquartered in Shanghai, China.