Comparing ATS (NYSE:ATS) and Alta Equipment Group (NYSE:ALTG)

ATS (NYSE:ATS) and Alta Equipment Group (NYSE:ALTG) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Profitability

This table compares ATS and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATS	0.77%	9.67%	3.74%
Alta Equipment Group	-4.37%	-341.70%	-5.63%

Risk and Volatility

ATS has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Earnings & Valuation

This table compares ATS and Alta Equipment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATS	$1.82 billion	1.63	-$20.16 million	$0.15	201.97
Alta Equipment Group	$1.84 billion	0.10	-$80.30 million	($2.56)	-2.27

ATS has higher earnings, but lower revenue than Alta Equipment Group. Alta Equipment Group is trading at a lower price-to-earnings ratio than ATS, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

75.8% of ATS shares are owned by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are owned by institutional investors. 19.2% of Alta Equipment Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ATS and Alta Equipment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATS	1	2	2	0	2.20
Alta Equipment Group	1	2	2	0	2.20

ATS presently has a consensus price target of $35.00, suggesting a potential upside of 15.53%. Alta Equipment Group has a consensus price target of $12.17, suggesting a potential upside of 109.45%. Given Alta Equipment Group’s higher probable upside, analysts plainly believe Alta Equipment Group is more favorable than ATS.

Summary

ATS beats Alta Equipment Group on 8 of the 12 factors compared between the two stocks.

About ATS

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. In addition, it offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services. Further, the company provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. Additionally, it offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. ATS Corporation serves life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.