Standex International Corporation (NYSE: SXI) and Altra Industrial Motion Corp. (NASDAQ:AIMC) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Standex International Corporation 6.08% 14.76% 7.35%
Altra Industrial Motion Corp. 4.17% 16.50% 6.29%

Volatility & Risk

Standex International Corporation has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Altra Industrial Motion Corp. has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

86.9% of Standex International Corporation shares are held by institutional investors. Comparatively, 98.3% of Altra Industrial Motion Corp. shares are held by institutional investors. 1.7% of Standex International Corporation shares are held by company insiders. Comparatively, 3.2% of Altra Industrial Motion Corp. 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.

Dividends

Standex International Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 0.6%. Altra Industrial Motion Corp. pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Standex International Corporation pays out 17.8% of its earnings in the form of a dividend. Altra Industrial Motion Corp. pays out 59.1% 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. Standex International Corporation has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Standex International Corporation and Altra Industrial Motion Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standex International Corporation 0 2 1 0 2.33
Altra Industrial Motion Corp. 0 3 2 0 2.40

Standex International Corporation presently has a consensus target price of $115.00, suggesting a potential upside of 10.74%. Altra Industrial Motion Corp. has a consensus target price of $48.50, suggesting a potential downside of 1.62%. Given Standex International Corporation’s higher possible upside, equities research analysts clearly believe Standex International Corporation is more favorable than Altra Industrial Motion Corp..

Valuation & Earnings

This table compares Standex International Corporation and Altra Industrial Motion Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Standex International Corporation $755.26 million 1.76 $98.18 million $3.60 28.85
Altra Industrial Motion Corp. $784.57 million 1.84 $110.94 million $1.15 42.87

Altra Industrial Motion Corp. has higher revenue and earnings than Standex International Corporation. Standex International Corporation 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 Standex International Corporation on 11 of the 17 factors compared between the two stocks.

Standex International Corporation Company Profile

Standex International Corporation is a diversified manufacturing company. The Company is a manufacturer of a range of products and services for diverse commercial and industrial market segments. The Company has 11 operating segments, aggregated and organized into five segments: Food Service Equipment, Engraving, Engineering Technologies, Electronics and Hydraulics. The Food Service Equipment business consists of Refrigeration Solutions group, Cooking Solutions group and Specialty Solutions group. The Engraving segment’s product lines include Mold-Tech and Innovent. The Engineering Technologies segment provides engineered parts in all workable metal alloys using various forming processes. The Electronics segment is a manufacturer of custom magnetic sensing and power conversion components and assemblies. The Hydraulics segment is a manufacturer of mobile hydraulic cylinders, including single or double acting telescopic, and piston rod hydraulic cylinders.

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.

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