Allison Transmission (NYSE:ALSN – Get Free Report) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it contrast to its competitors? We will compare Allison Transmission to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.
Insider & Institutional Ownership
96.9% of Allison Transmission shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 1.1% of Allison Transmission shares are owned by company insiders. Comparatively, 14.3% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Allison Transmission and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allison Transmission | 11.12% | 42.33% | 10.26% |
| Allison Transmission Competitors | -1,039.02% | -14.89% | 0.52% |
Analyst Recommendations
This is a breakdown of recent ratings for Allison Transmission and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allison Transmission | 0 | 3 | 4 | 2 | 2.89 |
| Allison Transmission Competitors | 4211 | 14724 | 18252 | 808 | 2.41 |
Allison Transmission presently has a consensus target price of $135.62, suggesting a potential upside of 4.55%. As a group, “Machinery” companies have a potential upside of 29.98%. Given Allison Transmission’s competitors higher possible upside, analysts plainly believe Allison Transmission has less favorable growth aspects than its competitors.
Volatility and Risk
Allison Transmission has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Allison Transmission’s competitors have a beta of 5.10, meaning that their average share price is 410% more volatile than the S&P 500.
Dividends
Allison Transmission pays an annual dividend of $1.16 per share and has a dividend yield of 0.9%. Allison Transmission pays out 16.7% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Allison Transmission has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Allison Transmission and its competitors top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Allison Transmission | $5.24 billion | $623.00 million | 18.64 |
| Allison Transmission Competitors | $4.66 billion | $364.17 million | 15.86 |
Allison Transmission has higher revenue and earnings than its competitors. Allison Transmission is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Summary
Allison Transmission beats its competitors on 10 of the 15 factors compared.
Allison Transmission Company Profile
Allison Transmission designs and manufactures vehicle propulsion solutions, with a core business in fully automatic transmissions for commercial and military vehicles. Its products are used in applications such as buses, trucks, construction and refuse vehicles, emergency vehicles, and defense equipment. The company also develops electrified propulsion technologies, including hybrid systems and electric axles, for commercial vehicles. Allison serves customers in markets around the world. Founded in 1915, Allison’s transmission business was part of General Motors for decades before becoming independent in 2007.
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