Altra Industrial Motion Corp. (NASDAQ: AIMC) and Intevac (NASDAQ:IVAC) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Altra Industrial Motion Corp. and Intevac, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altra Industrial Motion Corp. 0 1 2 0 2.67
Intevac 0 2 3 0 2.60

Altra Industrial Motion Corp. presently has a consensus target price of $46.50, indicating a potential upside of 1.97%. Intevac has a consensus target price of $14.25, indicating a potential upside of 54.05%. Given Intevac’s higher probable upside, analysts plainly believe Intevac is more favorable than Altra Industrial Motion Corp..

Volatility and Risk

Altra Industrial Motion Corp. has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Intevac has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Dividends

Altra Industrial Motion Corp. pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Intevac does not pay a dividend. Altra Industrial Motion Corp. pays out 59.1% of its earnings in the form of a dividend.

Profitability

This table compares Altra Industrial Motion Corp. and Intevac’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altra Industrial Motion Corp. 4.17% 16.50% 6.29%
Intevac 4.68% 7.29% 4.98%

Insider & Institutional Ownership

98.4% of Altra Industrial Motion Corp. shares are held by institutional investors. Comparatively, 70.0% of Intevac shares are held by institutional investors. 3.2% of Altra Industrial Motion Corp. shares are held by company insiders. Comparatively, 13.9% of Intevac shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Altra Industrial Motion Corp. and Intevac’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Altra Industrial Motion Corp. $784.57 million 1.70 $110.94 million $1.15 39.65
Intevac $112.89 million 1.78 $10.04 million $0.24 38.54

Altra Industrial Motion Corp. has higher revenue and earnings than Intevac. Intevac is trading at a lower price-to-earnings ratio than Altra Industrial Motion Corp., indicating that it is currently the more affordable of the two stocks.

Summary

Altra Industrial Motion Corp. beats Intevac on 9 of the 16 factors compared between the two stocks.

Altra Industrial Motion Corp. Company Profile

Altra Industrial Motion Corp. is a designer, producer and marketer of a range of mechanical power transmission (MPT) components. The Company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes, and Gearing. It manufactures a range of couplings suitable for various industrial and specialty applications. The Electromagnetic Clutches and Brakes segment products include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. The Gearing segment product lines include vertical and horizontal gear drives, speed reducers and increasers, high-speed compressor drives, enclosed custom gear drives, various enclosed gear drive and gear motor configurations, and open gearing products, such as spur, helical, worm and miter/bevel gears. Its products are used to control and transmit power and torque in virtually any industrial application involving movement.

Intevac Company Profile

Intevac, Inc. (Intevac) is a provider of vacuum deposition equipment for a range of thin-film applications, and digital night-vision technologies and products to the defense industry. The Company’s segments include Thin-film Equipment and Photonics. The Company designs, manufactures, markets and services capital equipment used to deposit thin films and lubricants onto substrates to produce magnetic disks that are used in hard disk drives. Its thin film equipment products include 200 Lean Disk Sputtering System, 200 Lean Etch and Deposition System, AccuLuber Disk Lubrication System, INTEVAC VERTEX System, INTEVAC MATRIX Implant System, ENERGi Implant System and INTEVAC MATRIX System. The Company’s photonic segment develops, manufactures and sells compact digital-optical products for the capture and display of low-light images.

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