Emerson Electric (NYSE:EMR – Get Free Report) and Allient (NASDAQ:ALNT – Get Free Report) are both industrials 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.
Volatility & Risk
Emerson Electric has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
Profitability
This table compares Emerson Electric and Allient’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Emerson Electric | 13.83% | 17.58% | 8.50% |
| Allient | 4.98% | 13.55% | 7.05% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Emerson Electric | 1 | 9 | 13 | 1 | 2.58 |
| Allient | 0 | 1 | 4 | 1 | 3.00 |
Emerson Electric currently has a consensus price target of $169.83, indicating a potential upside of 5.33%. Allient has a consensus price target of $84.00, indicating a potential downside of 28.35%. Given Emerson Electric’s higher probable upside, research analysts plainly believe Emerson Electric is more favorable than Allient.
Insider & Institutional Ownership
74.3% of Emerson Electric shares are held by institutional investors. Comparatively, 61.6% of Allient shares are held by institutional investors. 0.2% of Emerson Electric shares are held by insiders. Comparatively, 15.0% of Allient 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.
Earnings & Valuation
This table compares Emerson Electric and Allient”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Emerson Electric | $18.64 billion | 4.85 | $2.29 billion | $4.57 | 35.28 |
| Allient | $574.78 million | 3.47 | $22.03 million | $1.70 | 68.96 |
Emerson Electric has higher revenue and earnings than Allient. Emerson Electric is trading at a lower price-to-earnings ratio than Allient, indicating that it is currently the more affordable of the two stocks.
Dividends
Emerson Electric pays an annual dividend of $2.22 per share and has a dividend yield of 1.4%. Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.1%. Emerson Electric pays out 48.6% of its earnings in the form of a dividend. Allient pays out 9.4% 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. Emerson Electric has raised its dividend for 68 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Emerson Electric beats Allient on 12 of the 17 factors compared between the two stocks.
About Emerson Electric
Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
About Allient
Allient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries in the United States, Canada, South America, Europe, and Asia-Pacific. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products, as well as nano precision positioning systems, servo control systems, and digital servo amplifiers and drives. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers’ representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.
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