Altra Industrial Motion Corp. (NASDAQ: AIMC) is one of 18 publicly-traded companies in the “Industrial Machinery” industry, but how does it contrast to its peers? We will compare Altra Industrial Motion Corp. to similar businesses based on the strength of its profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares Altra Industrial Motion Corp. and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Altra Industrial Motion Corp. $784.57 million $110.94 million 41.39
Altra Industrial Motion Corp. Competitors $696.10 million $107.10 million 44.99

Altra Industrial Motion Corp. has higher revenue and earnings than its peers. Altra Industrial Motion Corp. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Altra Industrial Motion Corp. has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Altra Industrial Motion Corp.’s peers have a beta of 1.49, indicating that their average stock price is 49% 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 1.4%. Altra Industrial Motion Corp. pays out 59.1% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.1% and pay out 34.1% of their earnings in the form of a dividend.

Insider and Institutional Ownership

98.3% of Altra Industrial Motion Corp. shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Industrial Machinery” companies are owned by institutional investors. 3.2% of Altra Industrial Motion Corp. shares are owned by insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Altra Industrial Motion Corp. and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altra Industrial Motion Corp. 0 1 2 0 2.67
Altra Industrial Motion Corp. Competitors 93 396 335 25 2.34

Altra Industrial Motion Corp. currently has a consensus price target of $46.50, indicating a potential downside of 2.31%. As a group, “Industrial Machinery” companies have a potential upside of 12.40%. Given Altra Industrial Motion Corp.’s peers higher possible upside, analysts clearly believe Altra Industrial Motion Corp. has less favorable growth aspects than its peers.

Profitability

This table compares Altra Industrial Motion Corp. and its peers’ 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%
Altra Industrial Motion Corp. Competitors -24.03% 10.43% 4.25%

Summary

Altra Industrial Motion Corp. beats its peers on 10 of the 15 factors compared.

About Altra Industrial Motion Corp.

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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