Perceptron (NASDAQ: PRCP) and Allied Motion Technologies (NASDAQ:AMOT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Insider and Institutional Ownership

63.2% of Perceptron shares are held by institutional investors. Comparatively, 39.4% of Allied Motion Technologies shares are held by institutional investors. 10.3% of Perceptron shares are held by company insiders. Comparatively, 30.8% of Allied Motion Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Perceptron does not pay a dividend. Allied Motion Technologies pays out 11.4% of its earnings in the form of a dividend.

Risk and Volatility

Perceptron has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Allied Motion Technologies has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Perceptron and Allied Motion Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perceptron 0 0 2 0 3.00
Allied Motion Technologies 0 0 0 0 N/A

Perceptron currently has a consensus price target of $8.50, suggesting a potential upside of 15.80%. Given Perceptron’s higher probable upside, equities research analysts clearly believe Perceptron is more favorable than Allied Motion Technologies.

Profitability

This table compares Perceptron and Allied Motion Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perceptron -21.55% 2.32% 1.34%
Allied Motion Technologies 3.41% 10.65% 4.45%

Earnings and Valuation

This table compares Perceptron and Allied Motion Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perceptron $74.37 million 0.93 $4.99 million ($1.70) -4.32
Allied Motion Technologies $238.07 million 0.98 $26.26 million $0.88 28.13

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

Summary

Allied Motion Technologies beats Perceptron on 10 of the 15 factors compared between the two stocks.

About Perceptron

Perceptron, Inc. develops, produces and sells a range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and three-dimensional (3D) scanning. The Company’s products include 3D machine vision solutions, robot guidance, coordinate measuring machines (CMMs), laser scanning and advanced analysis software. The Company’s products are categorized as In-Line, Near-Line and Off-Line Measurement Solutions (Measurement Solutions); 3D Scanning Solutions, and Value Added Services. Its In-Line and Near-Line measurement solutions include AutoGauge, AutoFit, AutoScan, AutoGuide and Helix. Its Off-Line measurement solutions include Coord3 and TouchDMIS. Its 3D Scanning Solutions include ScanWorks, ScanR and WheelWorks. Its Value Added Services include training, field service, calibration, launch support services, maintenance agreements and repairs. The Company operates in the Americas, Europe and Asia.

About Allied Motion Technologies

Allied Motion Technologies Inc. designs, manufactures and sells precision and specialty motion control components and systems used in a range of industries. The Company serves various markets, including vehicle, medical, aerospace and defense, electronics and industrial. It focuses on motion control applications. It is engaged in developing electro-magnetic, mechanical and electronic motion technology. It operates in the design and manufacture of motion control products, marketed to original equipment manufacturers and end users segment. Its products are used in the handling, inspection, and testing of components and final products, such as printers, tunable lasers and spectrum analyzers for the fiber optic industry, and test and processing equipment for the semiconductor manufacturing industry. Its products are used in a range of medical, industrial and commercial aviation applications, such as dialysis equipment, industrial ink jet printers and cash dispensers.

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