Albany International (NYSE: AIN) and Altra Industrial Motion (NASDAQ:AIMC) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Insider & Institutional Ownership
90.7% of Albany International shares are held by institutional investors. Comparatively, 99.2% of Altra Industrial Motion shares are held by institutional investors. 11.6% of Albany International shares are held by insiders. Comparatively, 3.2% of Altra Industrial Motion shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Albany International has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Altra Industrial Motion has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
This table compares Albany International and Altra Industrial Motion’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altra Industrial Motion||4.92%||16.30%||6.29%|
Albany International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Altra Industrial Motion pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Albany International pays out 51.1% of its earnings in the form of a dividend. Altra Industrial Motion pays out 48.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Altra Industrial Motion is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and recommmendations for Albany International and Altra Industrial Motion, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altra Industrial Motion||0||3||1||0||2.25|
Altra Industrial Motion has a consensus price target of $48.50, indicating a potential downside of 9.09%. Given Altra Industrial Motion’s stronger consensus rating and higher probable upside, analysts plainly believe Altra Industrial Motion is more favorable than Albany International.
Valuation and Earnings
This table compares Albany International and Altra Industrial Motion’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Albany International||$779.84 million||2.56||$52.73 million||$1.33||46.58|
|Altra Industrial Motion||$708.91 million||2.20||$25.14 million||$1.41||37.84|
Albany International has higher revenue and earnings than Altra Industrial Motion. Altra Industrial Motion is trading at a lower price-to-earnings ratio than Albany International, indicating that it is currently the more affordable of the two stocks.
Altra Industrial Motion beats Albany International on 9 of the 16 factors compared between the two stocks.
Albany International Company Profile
Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company’s Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.
Altra Industrial Motion 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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