STEM vs. ETN

Last updated Jun 3, 2026

STEM (Stem, Inc.) and ETN (Eaton Corporation plc) are both stocks. STEM operates in Software - Infrastructure (Technology), while ETN operates in Specialty Industrial Machinery (Industrials). Over the past 5 years, STEM returned -56.21%/yr vs 25.16%/yr for ETN. At a 0.28 correlation, their price movements are largely independent.

Performance

STEM vs. ETN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Stem, Inc. (STEM) and Eaton Corporation plc (ETN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, STEM achieves a -33.42% return, which is significantly lower than ETN's 33.02% return.

STEM

• 1D: -1.28%
• 1M: -6.88%
• YTD: -33.42%
• 6M: -41.74%
• 1Y: 4.68%
• 3Y*: -54.81%
• 5Y*: -56.21%
• 10Y*: —

ETN

• 1D: 0.86%
• 1M: -0.02%
• YTD: 33.02%
• 6M: 26.26%
• 1Y: 30.76%
• 3Y*: 32.92%
• 5Y*: 25.16%
• 10Y*: 24.08%

*Multi-year figures are annualized to reflect compound growth (CAGR)

STEM vs. ETN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
STEM Stem, Inc.	-33.42%	24.79%	-84.46%	-56.60%	-52.87%	-7.28%	110.93%
ETN Eaton Corporation plc	33.02%	-2.79%	39.51%	56.22%	-7.18%	46.70%	12.55%

Correlation

The correlation between STEM and ETN is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (All Time) Calculated using the full available price history since Oct 9, 2020	0.28

Fundamentals

Market Cap STEM : $85.34M ETN : $163.93B
EPS STEM : $16.99 ETN : $10.22
PE Ratio STEM : 0.59 ETN : 41.19
PS Ratio STEM : 0.56 ETN : 5.76
Total Revenue (TTM) STEM : $152.75M ETN : $28.52B
Gross Profit (TTM) STEM : $55.48M ETN : $7.87B
EBITDA (TTM) STEM : $200.63M ETN : $4.75B

Return for Risk

STEM vs. ETN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

STEM

STEM Risk / Return Rank: 45
STEM Sharpe Ratio Rank: 42
STEM Sortino Ratio Rank: 54
STEM Omega Ratio Rank: 51
STEM Calmar Ratio Rank: 40
STEM Martin Ratio Rank: 39

ETN

ETN Risk / Return Rank: 67
ETN Sharpe Ratio Rank: 70
ETN Sortino Ratio Rank: 63
ETN Omega Ratio Rank: 62
ETN Calmar Ratio Rank: 69
ETN Martin Ratio Rank: 69

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

STEM vs. ETN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Stem, Inc. (STEM) and Eaton Corporation plc (ETN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	STEM	ETN	Difference
Sharpe ratio Return per unit of total volatility	0.04	0.97	-0.93
Sortino ratio Return per unit of downside risk	1.00	1.45	-0.45
Omega ratio Gain probability vs. loss probability	1.12	1.18	-0.07
Calmar ratio Return relative to maximum drawdown	0.03	1.61	-1.58
Martin ratio Return relative to average drawdown	0.05	3.53	-3.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STEM vs. ETN - Sharpe Ratio Comparison

The current STEM Sharpe Ratio is 0.04, which is lower than the ETN Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of STEM and ETN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	STEM	ETN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.04	0.97	-0.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.49	0.85	-1.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.35	0.42	-0.77

Drawdowns

STEM vs. ETN - Drawdown Comparison

The maximum STEM drawdown since its inception was -99.41%, which is greater than ETN's maximum drawdown of -68.95%. Use the drawdown chart below to compare losses from any high point for STEM and ETN.

Drawdown Indicators

	STEM	ETN	Difference
Max Drawdown Largest peak-to-trough decline	-99.41%	-68.95%	-30.46%
Max Drawdown (1Y) Largest decline over 1 year	-72.31%	-19.14%	-53.17%
Max Drawdown (3Y) Largest decline over 3 years	-95.98%	-34.46%	-61.52%
Max Drawdown (5Y) Largest decline over 5 years	-99.20%	-34.46%	-64.74%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.55%	—
Current Drawdown Current decline from peak	-99.00%	-2.46%	-96.54%
Average Drawdown Average peak-to-trough decline	-79.11%	-14.90%	-64.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	45.58%	8.75%	+36.83%

Volatility

STEM vs. ETN - Volatility Comparison

Stem, Inc. (STEM) has a higher volatility of 28.87% compared to Eaton Corporation plc (ETN) at 12.77%. This indicates that STEM's price experiences larger fluctuations and is considered to be riskier than ETN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	STEM	ETN	Difference
Volatility (1M) Calculated over the trailing 1-month period	28.87%	12.77%	+16.10%
Volatility (6M) Calculated over the trailing 6-month period	62.34%	25.11%	+37.23%
Volatility (1Y) Calculated over the trailing 1-year period	121.25%	32.08%	+89.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	114.05%	29.93%	+84.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	117.37%	29.96%	+87.41%

Dividends

STEM vs. ETN - Dividend Comparison

STEM has not paid dividends to shareholders, while ETN's dividend yield for the trailing twelve months is around 1.02%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ETN Eaton Corporation plc	1.02%	1.31%	1.13%	1.43%	2.06%	1.76%	1.88%	3.00%	3.85%	3.04%	3.40%	4.23%
STEM Stem, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

STEM vs. ETN - Profitability Comparison

The chart below illustrates the profitability comparison between Stem, Inc. and Eaton Corporation plc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

STEM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Stem, Inc. reported a gross profit of 10.86M and revenue of 29.00M. Therefore, the gross margin over that period was 37.4%.

ETN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Eaton Corporation plc reported a gross profit of 0.00 and revenue of 7.45B. Therefore, the gross margin over that period was 0.0%.

STEM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Stem, Inc. reported an operating income of -14.21M and revenue of 29.00M, resulting in an operating margin of -49.0%.

ETN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Eaton Corporation plc reported an operating income of 0.00 and revenue of 7.45B, resulting in an operating margin of 0.0%.

STEM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Stem, Inc. reported a net income of -18.93M and revenue of 29.00M, resulting in a net margin of -65.3%.

ETN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Eaton Corporation plc reported a net income of 866.00M and revenue of 7.45B, resulting in a net margin of 11.6%.

Frequently Asked Questions

Can I hold both STEM and ETN in my portfolio?

STEM and ETN have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STEM or ETN?

STEM has higher volatility (28.87%) compared to ETN (12.77%). In terms of maximum drawdown, STEM dropped -99.41% vs ETN's -68.95%.

Which has better risk-adjusted returns?

ETN currently has the higher Sharpe Ratio (0.97 vs 0.04), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.