AYI vs ETN

For growth investors, Acuity Brands, Inc.

(AYI) is the stronger pick with 13. 1% revenue growth year-over-year, versus 10. 3% for Eaton Corporation plc (ETN). Acuity Brands, Inc. (AYI) offers the better valuation at 23. 6x trailing P/E (15. 1x forward), making it the more compelling value choice. Analysts rate Eaton Corporation plc (ETN) a "Buy" — based on 39 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Acuity Brands, Inc.

(AYI) is the cheapest at 23. 6x versus Eaton Corporation plc at 38. 2x. On forward P/E, Acuity Brands, Inc. is actually cheaper at 15. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Acuity Brands, Inc. wins at 1. 02x versus Eaton Corporation plc's 1. 22x — a reasonable growth-adjusted valuation.

Over the past 5 years, Eaton Corporation plc (ETN) delivered a total return of +182.

8%, compared to +55. 7% for Acuity Brands, Inc. (AYI). Over 10 years, the gap is even starker: ETN returned +608. 7% versus AYI's +21. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Acuity Brands, Inc.

(AYI) is the lower-risk stock at 1. 40β versus Eaton Corporation plc's 1. 42β — meaning ETN is approximately 1% more volatile than AYI relative to the S&P 500. On balance sheet safety, Acuity Brands, Inc. (AYI) carries a lower debt/equity ratio of 37% versus 57% for Eaton Corporation plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Acuity Brands, Inc.

(AYI) is pulling ahead at 13. 1% versus 10. 3% for Eaton Corporation plc (ETN). On earnings-per-share growth, the picture is similar: Eaton Corporation plc grew EPS 10. 1% year-over-year, compared to -6. 8% for Acuity Brands, Inc.. Over a 3-year CAGR, ETN leads at 9. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Eaton Corporation plc (ETN) is the more profitable company, earning 14.

9% net margin versus 9. 1% for Acuity Brands, Inc. — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ETN leads at 19. 1% versus 13. 7% for AYI. At the gross margin level — before operating expenses — AYI leads at 47. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Acuity Brands, Inc. (AYI) is the more undervalued stock at a PEG of 1. 02x versus Eaton Corporation plc's 1. 22x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Acuity Brands, Inc. (AYI) trades at 15. 1x forward P/E versus 30. 0x for Eaton Corporation plc — 14. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AYI: 32. 9% to $392. 50.

All stocks in this comparison pay dividends.

Eaton Corporation plc (ETN) offers the highest yield at 1. 0%, versus 0. 2% for Acuity Brands, Inc. (AYI).

For long-horizon retirement investors, Eaton Corporation plc (ETN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.

0% yield, +608. 7% 10Y return). Both have compounded well over 10 years (ETN: +608. 7%, AYI: +21. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

ETN pays a dividend while AYI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.