Critical Survey: Vestas Wind Systems AS (OTCMKTS:VWDRY) versus Allient (NASDAQ:ALNT)

Allient (NASDAQ:ALNT) and Vestas Wind Systems AS (OTCMKTS:VWDRY) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

61.6% of Allient shares are held by institutional investors. 15.0% of Allient shares are held 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.

Valuation & Earnings

This table compares Allient and Vestas Wind Systems AS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$554.48 million	2.63	$22.03 million	$1.70	50.42
Vestas Wind Systems AS	$21.29 billion	1.33	$880.23 million	$0.43	22.05

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

Profitability

This table compares Allient and Vestas Wind Systems AS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allient	4.98%	13.55%	7.05%
Vestas Wind Systems AS	5.42%	29.07%	4.22%

Risk and Volatility

Allient has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Vestas Wind Systems AS has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Dividends

Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. Vestas Wind Systems AS pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Allient pays out 9.4% of its earnings in the form of a dividend. Vestas Wind Systems AS pays out 4.7% 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. Vestas Wind Systems AS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Allient and Vestas Wind Systems AS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	3	3	0	2.50
Vestas Wind Systems AS	1	1	1	4	3.14

Allient presently has a consensus price target of $84.00, suggesting a potential downside of 2.00%. Given Allient’s higher probable upside, equities analysts clearly believe Allient is more favorable than Vestas Wind Systems AS.

Summary

Allient beats Vestas Wind Systems AS on 9 of the 17 factors compared between the two stocks.

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.

About Vestas Wind Systems AS

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.