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ABB vs. Rockwell: Which Industrial Automation Stock has Better Prospects?
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Key Takeaways
ROK's cloud-native tools and software growth are driving double-digit ARR and broad end-market gains.
ABB's Process Automation orders rose 45% in Q2, but Robotics segment weakness and debt weigh on growth.
ABB trades at 25.27X forward P/E vs. ROK's 31.49X, yet ROK shows stronger stock and estimate momentum.
ABB Ltd (ABBNY - Free Report) and Rockwell Automation, Inc. (ROK - Free Report) are two prominent names operating in the industrial automation and electrification industries. While ABB focuses on power and automation technologies, Rockwell Automation is a leading provider of industrial automation and information technologies, with its widely recognised brand being Allen-Bradley.
Both companies have been enjoying significant growth opportunities in the electronics and automation space with steady demand across the electronic services market and increasing adoption of automation technologies and digital automation platforms. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for ABB
The strongest driver of ABB’s business at the moment is the Process Automation segment, supported by strength in the marine, ports and energy industries. Strong project activity in several areas, like passenger vessels, port electrification and industrial automation, has been driving its performance. Customers continue to invest in advanced automation platforms to improve efficiency and operational control, which has been proving beneficial for the segment.
In the second quarter of 2025, orders from the segment increased 45% and revenues rose 5% year over year. It recorded the booking of a large order in the quarter that contributed $600 million (net), with deliveries stretching over a multi-year period. Exiting the second quarter, the segment’s order backlog totaled $9.3 billion, higher than $8.1 billion reported at the end of the previous quarter.
ABB is also witnessing robust momentum in the Electrification segment, driven by solid customer activities in most of the markets, including utilities and commercial buildings. Investments in several areas like electronics, semiconductors and pharmaceuticals also supported order growth. In the second quarter, the segment’s orders and revenues rose 11% and 14%, respectively, year over year.
Strength in commercial building HVAC, power generation, water and wastewater markets, along with ABBNY’s solid execution of the order backlog, has been augmenting its Motion segment’s results. In the second quarter, the segment’s orders and revenues rose 5% and 6%, respectively year over year.
However, weakness in the machine automation market has remained a major concern for its Robotics & Discrete Automation segment. Demand remains muted in the chemicals, pulp & paper, and mining industries. Global uncertainty, particularly related to trade policies and slower investment decisions, may also affect the pace of large capital projects, which might affect the company’s performance.
High debt levels raise financial obligations and hurt the company’s profitability. It exited second-quarter 2025 with long-term debt of $8.26 billion, higher than $6.65 billion reported at the end of 2024. Also, its short-term debt and current maturities of long-term debt surged 90% over the same period.
The Case for Rockwell
Rockwell is poised well to benefit from broadening its portfolio of hardware and software products, solutions and services. It is also gaining traction from investments in the cloud. The company's FactoryTalk Design Studio includes a copilot, which improves automation system design efficiency and is integrated into this cloud-native application, an industry first. Significant investments to globalize manufacturing, product development, building channel capability and partner networks will drive growth.
The company continues to win expansion projects with its flexible material handling technology and digital twin software in e-commerce and warehouse automation. It is also expanding its capacity in semiconductor applications with chip-making machinery, material handling equipment and building management systems at the world’s largest semiconductor capital equipment companies. It is witnessing enhanced oil and gas sales led by improving trends in upstream and midstream.
Sales from ROK’s Information Solutions and Connected Services are gaining from strong order wins from software and infrastructure services. Customers in life sciences, food and beverage, mining and many other end markets rely on Rockwell to provide robust network technology and real-time domain expertise to keep their critical operations secure and resilient.
Its Life Sciences solutions business is well-placed to gain from a wide range of product offerings and Sensis JV. The company’s total annual recurring revenues (ARR) grew in the double-digits in fiscal 2024 (ended September 2024) and are projected to grow 10% in fiscal 2025 (ending September 2025).
ROK maintains a strong financial position with regard to capital structure, cost-containment actions and liquidity. The company repurchased 0.5 million shares for $129 million in the fiscal second quarter of 2025 (ended March 2025). As of the end of the quarter, $1.1 billion was available under the existing share-repurchase authorization.
Price Performance
In the past year, ABB shares have risen 18.7%, while Rockwell stock has surged 28.9%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ABB & ROK
The Zacks Consensus Estimate for ABB’s 2025 sales and earnings per share (EPS) implies year-over-year growth of 6.1% and 14.1%, respectively. Although the EPS estimates for 2025 have decreased over the past 60 days, the same for 2026 has increased.
Image Source: Zacks Investment Research
While the Zacks Consensus Estimate for ROK’s fiscal 2025 sales implies a decline of 1.8% year over year, the EPS estimate indicates an increase of 1%. ROK’s EPS estimates have been trending northward for both fiscal 2025 and fiscal 2026 (ending September 2026) over the past 60 days.
Image Source: Zacks Investment Research
ABB’s Valuation Attractive Than ROK
ABB is trading at a forward 12-month price-to-earnings ratio of 25.27X, while Rockwell Automation’s forward earnings multiple sits higher at 31.49X.
Image Source: Zacks Investment Research
Final Take
ABB’s strength in the Electrification and Process Automation segments has been dented by the persistent softness in the Robotics & Discrete Automation segment. The company’s solid order intake and robust backlog add to its strength. However, its high debt profile remains a constraint.
In contrast, Rockwell Automation’s market leadership position, coupled with its investments across various end markets, positions it for strong growth in the quarters ahead. Despite its steeper valuation, ROK holds robust prospects due to strong estimates, stock price appreciation and better prospects in the industrial automation space.
Image: Bigstock
ABB vs. Rockwell: Which Industrial Automation Stock has Better Prospects?
Key Takeaways
ABB Ltd (ABBNY - Free Report) and Rockwell Automation, Inc. (ROK - Free Report) are two prominent names operating in the industrial automation and electrification industries. While ABB focuses on power and automation technologies, Rockwell Automation is a leading provider of industrial automation and information technologies, with its widely recognised brand being Allen-Bradley.
Both companies have been enjoying significant growth opportunities in the electronics and automation space with steady demand across the electronic services market and increasing adoption of automation technologies and digital automation platforms. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for ABB
The strongest driver of ABB’s business at the moment is the Process Automation segment, supported by strength in the marine, ports and energy industries. Strong project activity in several areas, like passenger vessels, port electrification and industrial automation, has been driving its performance. Customers continue to invest in advanced automation platforms to improve efficiency and operational control, which has been proving beneficial for the segment.
In the second quarter of 2025, orders from the segment increased 45% and revenues rose 5% year over year. It recorded the booking of a large order in the quarter that contributed $600 million (net), with deliveries stretching over a multi-year period. Exiting the second quarter, the segment’s order backlog totaled $9.3 billion, higher than $8.1 billion reported at the end of the previous quarter.
ABB is also witnessing robust momentum in the Electrification segment, driven by solid customer activities in most of the markets, including utilities and commercial buildings. Investments in several areas like electronics, semiconductors and pharmaceuticals also supported order growth. In the second quarter, the segment’s orders and revenues rose 11% and 14%, respectively, year over year.
Strength in commercial building HVAC, power generation, water and wastewater markets, along with ABBNY’s solid execution of the order backlog, has been augmenting its Motion segment’s results. In the second quarter, the segment’s orders and revenues rose 5% and 6%, respectively year over year.
However, weakness in the machine automation market has remained a major concern for its Robotics & Discrete Automation segment. Demand remains muted in the chemicals, pulp & paper, and mining industries. Global uncertainty, particularly related to trade policies and slower investment decisions, may also affect the pace of large capital projects, which might affect the company’s performance.
High debt levels raise financial obligations and hurt the company’s profitability. It exited second-quarter 2025 with long-term debt of $8.26 billion, higher than $6.65 billion reported at the end of 2024. Also, its short-term debt and current maturities of long-term debt surged 90% over the same period.
The Case for Rockwell
Rockwell is poised well to benefit from broadening its portfolio of hardware and software products, solutions and services. It is also gaining traction from investments in the cloud. The company's FactoryTalk Design Studio includes a copilot, which improves automation system design efficiency and is integrated into this cloud-native application, an industry first. Significant investments to globalize manufacturing, product development, building channel capability and partner networks will drive growth.
The company continues to win expansion projects with its flexible material handling technology and digital twin software in e-commerce and warehouse automation. It is also expanding its capacity in semiconductor applications with chip-making machinery, material handling equipment and building management systems at the world’s largest semiconductor capital equipment companies. It is witnessing enhanced oil and gas sales led by improving trends in upstream and midstream.
Sales from ROK’s Information Solutions and Connected Services are gaining from strong order wins from software and infrastructure services. Customers in life sciences, food and beverage, mining and many other end markets rely on Rockwell to provide robust network technology and real-time domain expertise to keep their critical operations secure and resilient.
Its Life Sciences solutions business is well-placed to gain from a wide range of product offerings and Sensis JV. The company’s total annual recurring revenues (ARR) grew in the double-digits in fiscal 2024 (ended September 2024) and are projected to grow 10% in fiscal 2025 (ending September 2025).
ROK maintains a strong financial position with regard to capital structure, cost-containment actions and liquidity. The company repurchased 0.5 million shares for $129 million in the fiscal second quarter of 2025 (ended March 2025). As of the end of the quarter, $1.1 billion was available under the existing share-repurchase authorization.
Price Performance
In the past year, ABB shares have risen 18.7%, while Rockwell stock has surged 28.9%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ABB & ROK
The Zacks Consensus Estimate for ABB’s 2025 sales and earnings per share (EPS) implies year-over-year growth of 6.1% and 14.1%, respectively. Although the EPS estimates for 2025 have decreased over the past 60 days, the same for 2026 has increased.
Image Source: Zacks Investment Research
While the Zacks Consensus Estimate for ROK’s fiscal 2025 sales implies a decline of 1.8% year over year, the EPS estimate indicates an increase of 1%. ROK’s EPS estimates have been trending northward for both fiscal 2025 and fiscal 2026 (ending September 2026) over the past 60 days.
Image Source: Zacks Investment Research
ABB’s Valuation Attractive Than ROK
ABB is trading at a forward 12-month price-to-earnings ratio of 25.27X, while Rockwell Automation’s forward earnings multiple sits higher at 31.49X.
Image Source: Zacks Investment Research
Final Take
ABB’s strength in the Electrification and Process Automation segments has been dented by the persistent softness in the Robotics & Discrete Automation segment. The company’s solid order intake and robust backlog add to its strength. However, its high debt profile remains a constraint.
In contrast, Rockwell Automation’s market leadership position, coupled with its investments across various end markets, positions it for strong growth in the quarters ahead. Despite its steeper valuation, ROK holds robust prospects due to strong estimates, stock price appreciation and better prospects in the industrial automation space.
Given these factors, ROK seems to be a better pick for investors than ABB currently. While ROK currently carries a Zacks Rank #2 (Buy), ABB has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.