Financial Survey: Albany International (AIN) versus Altra Industrial Motion (AIMC)

Albany International (NYSE: AIN) and Altra Industrial Motion (NASDAQ:AIMC) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

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
Albany International 5.06% 9.24% 3.83%
Altra Industrial Motion 4.92% 16.30% 6.29%

Dividends

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.

Earnings and Valuation

This table compares Albany International and Altra Industrial Motion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Albany International $779.84 million 2.61 $52.73 million $1.33 47.59
Altra Industrial Motion $708.91 million 2.13 $25.14 million $1.41 36.56

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.

Risk & Volatility

Albany International has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Altra Industrial Motion has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

90.7% of Albany International shares are owned by institutional investors. Comparatively, 99.2% of Altra Industrial Motion shares are owned by institutional investors. 11.6% of Albany International shares are owned by company insiders. Comparatively, 3.2% of Altra Industrial Motion shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Albany International and Altra Industrial Motion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albany International 0 1 0 0 2.00
Altra Industrial Motion 0 3 1 0 2.25

Altra Industrial Motion has a consensus price target of $48.50, suggesting a potential downside of 5.92%. Given Altra Industrial Motion’s stronger consensus rating and higher possible upside, analysts clearly believe Altra Industrial Motion is more favorable than Albany International.

Summary

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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