Analyzing Altra Industrial Motion Corp. (AIMC) and The Competition
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 rivals? We will compare Altra Industrial Motion Corp. to similar businesses based on the strength of its analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
This table compares Altra Industrial Motion Corp. and its rivals’ 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%|
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 1.0% and pay out 34.1% of their earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Altra Industrial Motion Corp. and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altra Industrial Motion Corp.||0||3||2||0||2.40|
|Altra Industrial Motion Corp. Competitors||44||291||292||8||2.42|
Altra Industrial Motion Corp. currently has a consensus target price of $48.50, suggesting a potential upside of 1.25%. As a group, “Industrial Machinery” companies have a potential upside of 7.47%. Given Altra Industrial Motion Corp.’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Altra Industrial Motion Corp. has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Altra Industrial Motion Corp. and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Altra Industrial Motion Corp.||$784.57 million||$110.94 million||41.65|
|Altra Industrial Motion Corp. Competitors||$696.10 million||$107.92 million||49.94|
Altra Industrial Motion Corp. has higher revenue and earnings than its rivals. Altra Industrial Motion Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
98.3% of Altra Industrial Motion Corp. shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 3.2% of Altra Industrial Motion Corp. shares are owned by company insiders. Comparatively, 12.0% of shares of all “Industrial Machinery” companies are owned 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.
Volatility and Risk
Altra Industrial Motion Corp. has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Altra Industrial Motion Corp.’s rivals have a beta of 1.52, indicating that their average share price is 52% more volatile than the S&P 500.
Altra Industrial Motion Corp. beats its rivals on 8 of the 15 factors compared.
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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