Head-To-Head Survey: Altra Industrial Motion Corp. (AIMC) and Amtech Systems (ASYS)

Altra Industrial Motion Corp. (NASDAQ: AIMC) and Amtech Systems (NASDAQ:ASYS) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Altra Industrial Motion Corp. and Amtech Systems’ 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%
Amtech Systems 1.00% 2.34% 1.18%

Dividends

Altra Industrial Motion Corp. pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Amtech Systems does not pay a dividend. Altra Industrial Motion Corp. pays out 59.1% of its earnings in the form of a dividend.

Volatility and Risk

Altra Industrial Motion Corp. has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Amtech Systems has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Institutional & Insider Ownership

98.3% of Altra Industrial Motion Corp. shares are owned by institutional investors. Comparatively, 50.0% of Amtech Systems shares are owned by institutional investors. 3.2% of Altra Industrial Motion Corp. shares are owned by insiders. Comparatively, 34.6% of Amtech Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Altra Industrial Motion Corp. and Amtech Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altra Industrial Motion Corp. 0 1 2 0 2.67
Amtech Systems 0 0 3 0 3.00

Altra Industrial Motion Corp. currently has a consensus target price of $46.50, indicating a potential upside of 0.76%. Amtech Systems has a consensus target price of $12.50, indicating a potential upside of 16.39%. Given Amtech Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Amtech Systems is more favorable than Altra Industrial Motion Corp..

Valuation and Earnings

This table compares Altra Industrial Motion Corp. and Amtech Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Altra Industrial Motion Corp. $784.57 million 1.72 $110.94 million $1.15 40.13
Amtech Systems $152.25 million 0.94 $4.90 million $0.12 89.50

Altra Industrial Motion Corp. has higher revenue and earnings than Amtech Systems. Altra Industrial Motion Corp. is trading at a lower price-to-earnings ratio than Amtech Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Altra Industrial Motion Corp. beats Amtech Systems on 9 of the 16 factors compared between the two stocks.

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.

Amtech Systems Company Profile

Amtech Systems, Inc. is engaged in the manufacture of capital equipment, including thermal processing, silicon wafer handling automation and related consumables used in fabricating solar cells, Light Emitting Diode (LED) and semiconductor devices. The Company operates through three business segments: solar, semiconductor and polishing. The solar segment supplies thermal processing systems, including diffusion; plasma-enhanced chemical vapor deposition (PECVD); atomic layer deposition (ALD), and related automation, parts and services to the solar/photovoltaic industry. The semiconductor segment supplies thermal processing equipment, including solder reflow equipment and related controls for use by the semiconductor manufacturers and in electronics assembly for automotive and other industries. The polishing supplies segment produces consumables and machinery for lapping (fine abrading) and polishing of materials, such as sapphire substrates and optical components.

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