Contrasting Alps Electric (OTCMKTS:APELY) and Allient (NASDAQ:ALNT)

Alps Electric (OTCMKTS:APELY) and Allient (NASDAQ:ALNT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Alps Electric and Allient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alps Electric	5.06%	5.32%	2.99%
Allient	3.97%	12.53%	6.21%

Risk & Volatility

Alps Electric has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Allient has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Alps Electric shares are owned by institutional investors. Comparatively, 61.6% of Allient shares are owned by institutional investors. 10.4% of Alps Electric shares are owned by insiders. Comparatively, 15.6% of Allient shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Alps Electric and Allient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alps Electric	$6.50 billion	0.45	$249.72 million	$3.36	8.32
Allient	$554.48 million	2.02	$22.03 million	$1.32	50.02

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alps Electric and Allient, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alps Electric	1	1	0	0	1.50
Allient	0	4	3	0	2.43

Allient has a consensus price target of $63.60, indicating a potential downside of 3.68%. Given Allient’s stronger consensus rating and higher probable upside, analysts clearly believe Allient is more favorable than Alps Electric.

Dividends

Alps Electric pays an annual dividend of $0.47 per share and has a dividend yield of 1.7%. Allient pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Alps Electric pays out 14.0% of its earnings in the form of a dividend. Allient pays out 9.1% 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.

Summary

Allient beats Alps Electric on 11 of the 16 factors compared between the two stocks.

About Alps Electric

Alps Alpine Co., Ltd. manufactures and sells electronic components in Japan and internationally. It operates through four segments: Components, Sensor Communication, Module Systems, and Logistics. The company’s products for the consumer, industrial equipment, and IoT markets include TACT switches, worker condition monitoring systems, HAPTIC reactor, actuator for cameras, remote monitoring system for logistics, analog meter monitoring system, resistive position sensor, pressure sensor, air environment sensor module, three-axis geomagnetic sensor, humidity sensor, and pc board mount current sensor. Its products for the automotive market comprises TACT and detector switches, Encoder, aspherical glass lens with metal holder, HAPTIC reactor, trimagic converter, current sensor, magnetic sensor, millimeter-wave sensor, GNSS module, 5G NR module, power window switch, electric shifter, sound system, cabin controller, smart door trim, electric shifter, integrated display, premium sound speakers, and customized car products. The company also provides systems development, office, and financing and leasing services, as well as transportation, storage, and forwarding services. The company was formerly known as Alps Electric Co., Ltd. and changed its name to Alps Alpine Co., Ltd. in January 2019. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

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.