Ouster (NYSE:OUST) and Regal Rexnord (NYSE:RRX) Critical Survey

Ouster (NYSE:OUST) and Regal Rexnord (NYSE:RRX) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

31.5% of Ouster shares are held by institutional investors. Comparatively, 99.7% of Regal Rexnord shares are held by institutional investors. 7.8% of Ouster shares are held by insiders. Comparatively, 0.8% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ouster	-239.89%	-88.42%	-50.61%
Regal Rexnord	-0.48%	9.42%	3.86%

Earnings and Valuation

This table compares Ouster and Regal Rexnord’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ouster	$83.28 million	5.34	-$374.11 million	($5.58)	-1.76
Regal Rexnord	$6.25 billion	1.44	-$57.40 million	($0.48)	-281.71

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

Volatility and Risk

Ouster has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ouster and Regal Rexnord, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ouster	0	3	2	0	2.40
Regal Rexnord	0	1	5	0	2.83

Ouster presently has a consensus target price of $12.10, indicating a potential upside of 23.09%. Regal Rexnord has a consensus target price of $192.00, indicating a potential upside of 41.99%. Given Regal Rexnord’s stronger consensus rating and higher possible upside, analysts clearly believe Regal Rexnord is more favorable than Ouster.

Summary

Regal Rexnord beats Ouster on 10 of the 14 factors compared between the two stocks.

About Ouster

Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.

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.