WESCO International (NYSE:WCC) vs. Alta Equipment Group (NYSE:ALTG) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alta Equipment Group	-4.42%	-3,253.61%	-5.92%
WESCO International	2.84%	14.95%	4.45%

Earnings and Valuation

This table compares Alta Equipment Group and WESCO International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alta Equipment Group	$1.84 billion	0.12	-$80.30 million	($2.57)	-2.61
WESCO International	$23.51 billion	0.72	$640.20 million	$14.47	24.12

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

Volatility & Risk

Alta Equipment Group has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, WESCO International has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Insider and Institutional Ownership

73.6% of Alta Equipment Group shares are held by institutional investors. Comparatively, 93.8% of WESCO International shares are held by institutional investors. 20.5% of Alta Equipment Group shares are held by company insiders. Comparatively, 2.6% of WESCO International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Alta Equipment Group and WESCO International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alta Equipment Group	1	2	1	0	2.00
WESCO International	0	0	8	1	3.11

Alta Equipment Group currently has a consensus target price of $8.75, suggesting a potential upside of 30.48%. WESCO International has a consensus target price of $374.29, suggesting a potential upside of 7.22%. Given Alta Equipment Group’s higher probable upside, research analysts clearly believe Alta Equipment Group is more favorable than WESCO International.

Summary

WESCO International beats Alta Equipment Group on 12 of the 15 factors compared between the two stocks.

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.

About WESCO International

WESCO International, Inc. provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS). The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products. This segment also offers contractor solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions. The CSS segment operates in the network infrastructure and security markets. This segment sells products directly to end-users or through various channels, including data communications contractors, security, network, professional audio/visual, and systems integrators. It also provides safety and energy management solutions. The UBS segment offers products and services to investor-owned utilities; public power companies; and service and wireless providers, broadband operators, and contractors. This segment's products include wire and cables, transformers, transmission and distribution hardware, switches, protective devices, connectors, conduits, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices. This segment also offers various service solutions, including fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and metering infrastructure installation, personal protective equipment dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.