Playags (NYSE: AGS) and Altra Industrial Motion (NASDAQ:AIMC) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Altra Industrial Motion pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Playags does not pay a dividend. Altra Industrial Motion pays out 38.2% of its earnings in the form of a dividend.
This is a summary of current recommendations for Playags and Altra Industrial Motion, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altra Industrial Motion||0||2||3||0||2.60|
Playags presently has a consensus target price of $24.25, suggesting a potential upside of 11.09%. Altra Industrial Motion has a consensus target price of $50.60, suggesting a potential upside of 6.98%. Given Playags’ stronger consensus rating and higher possible upside, research analysts plainly believe Playags is more favorable than Altra Industrial Motion.
Valuation and Earnings
This table compares Playags and Altra Industrial Motion’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Playags||$211.96 million||3.62||-$45.10 million||N/A||N/A|
|Altra Industrial Motion||$876.74 million||1.59||$51.42 million||$1.78||26.57|
Altra Industrial Motion has higher revenue and earnings than Playags.
Institutional and Insider Ownership
98.3% of Altra Industrial Motion shares are held by institutional investors. 3.2% of Altra Industrial Motion shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Playags 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||5.87%||15.92%||6.55%|
Altra Industrial Motion beats Playags on 8 of the 13 factors compared between the two stocks.
Playags Company Profile
PlayAGS, Inc. is a designer and supplier of EGMs and other products and services for the gaming industry. The Company is focused on supplying electronic gaming machines (EGMs), including slot machines, video bingo machines, and other electronic gaming devices, to the Native American gaming market. Its product line-up to include Class III EGMs for commercial and Native American casinos permitted to operate Class III EGMs, table game products and interactive products. The Company’s EGM segment delivers on several EGM cabinets, including ICON, Orion, and Big Red/Colossal Diamonds. It has also developed a new Latin-style bingo cabinet called ALORA, which is used in select international markets, including the Philippines and Brazil.
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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