EnPro Industries (NYSE: NPO) and Altra Industrial Motion Corp. (NASDAQ:AIMC) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Risk & Volatility
EnPro Industries has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Altra Industrial Motion Corp. has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.
Valuation and Earnings
This table compares EnPro Industries and Altra Industrial Motion Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EnPro Industries||$1.18 billion||1.29||$162.20 million||$0.85||83.67|
|Altra Industrial Motion Corp.||$784.57 million||1.65||$110.94 million||$1.15||38.30|
EnPro Industries has higher revenue and earnings than Altra Industrial Motion Corp.. Altra Industrial Motion Corp. is trading at a lower price-to-earnings ratio than EnPro Industries, indicating that it is currently the more affordable of the two stocks.
EnPro Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Altra Industrial Motion Corp. pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. EnPro Industries pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altra Industrial Motion Corp. pays out 59.1% of its earnings in the form of a dividend. Altra Industrial Motion Corp. is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and price targets for EnPro Industries and Altra Industrial Motion Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altra Industrial Motion Corp.||0||1||2||0||2.67|
EnPro Industries presently has a consensus price target of $85.00, suggesting a potential upside of 19.52%. Altra Industrial Motion Corp. has a consensus price target of $46.50, suggesting a potential upside of 5.56%. Given EnPro Industries’ stronger consensus rating and higher possible upside, analysts clearly believe EnPro Industries is more favorable than Altra Industrial Motion Corp..
Institutional & Insider Ownership
94.8% of EnPro Industries shares are owned by institutional investors. Comparatively, 98.2% of Altra Industrial Motion Corp. shares are owned by institutional investors. 2.6% of EnPro Industries shares are owned by insiders. Comparatively, 3.2% of Altra Industrial Motion Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares EnPro Industries and Altra Industrial Motion Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altra Industrial Motion Corp.||4.17%||16.50%||6.29%|
Altra Industrial Motion Corp. beats EnPro Industries on 10 of the 15 factors compared between the two stocks.
EnPro Industries Company Profile
EnPro Industries, Inc. is engaged in the designing, developing, manufacturing and marketing engineered industrial products. It operates through three segments. The Sealing Products segment includes three operating divisions: Garlock, which designs, manufactures and sells sealing products; Technetics, which designs, manufactures and sells metal seals and elastomeric seals, among others, and Stemco LP (Stemco), which designs, manufactures and sells heavy-duty truck wheel-end components and systems. The Engineered Products segment includes two industrial products businesses: GGB, which designs, manufactures and sells self-lubricating, non-rolling, metal polymer and engineered plastics, among others, and Compressor Products International, which designs, manufactures, sells and services components. The Power Systems segment includes Fairbanks Morse business, which designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines.
Altra Industrial Motion Corp. Company Profile
Altra Industrial Motion Corp. is a designer, producer and marketer of a range of mechanical power transmission (MPT) components. The Company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes, and Gearing. It manufactures a range of couplings suitable for various industrial and specialty applications. The Electromagnetic Clutches and Brakes segment products include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. The Gearing segment product lines include vertical and horizontal gear drives, speed reducers and increasers, high-speed compressor drives, enclosed custom gear drives, various enclosed gear drive and gear motor configurations, and open gearing products, such as spur, helical, worm and miter/bevel gears. Its products are used to control and transmit power and torque in virtually any industrial application involving movement.
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