Reviewing Ralliant (NYSE:RAL) & Vontier (NYSE:VNT)

Ralliant (NYSE:RAL) and Vontier (NYSE:VNT) are both mid-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

95.8% of Vontier shares are held by institutional investors. 0.4% of Ralliant shares are held by insiders. Comparatively, 1.1% of Vontier shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Ralliant pays out -1.9% of its earnings in the form of a dividend. Vontier pays out 4.1% 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. Ralliant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Ralliant and Vontier, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralliant	0	5	7	0	2.58
Vontier	1	3	4	0	2.38

Ralliant currently has a consensus price target of $78.40, suggesting a potential upside of 16.47%. Vontier has a consensus price target of $41.86, suggesting a potential downside of 0.54%. Given Ralliant’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ralliant is more favorable than Vontier.

Profitability

This table compares Ralliant and Vontier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralliant	-52.10%	20.40%	8.62%
Vontier	11.27%	39.53%	11.74%

Valuation & Earnings

This table compares Ralliant and Vontier”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralliant	$2.07 billion	3.60	-$1.22 billion	($10.43)	-6.45
Vontier	$3.08 billion	1.85	$406.10 million	$2.41	17.46

Vontier has higher revenue and earnings than Ralliant. Ralliant is trading at a lower price-to-earnings ratio than Vontier, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ralliant has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

About Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.