Altra Industrial Motion (NASDAQ:AIMC) and Taylor Devices (NASDAQ:TAYD) 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 dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Altra Industrial Motion and Taylor Devices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altra Industrial Motion 0 0 4 0 3.00
Taylor Devices 0 0 0 0 N/A

Altra Industrial Motion presently has a consensus price target of $50.00, suggesting a potential upside of 77.68%. Given Altra Industrial Motion’s higher possible upside, analysts clearly believe Altra Industrial Motion is more favorable than Taylor Devices.

Volatility and Risk

Altra Industrial Motion has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Taylor Devices has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Altra Industrial Motion and Taylor Devices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altra Industrial Motion 5.68% 17.72% 7.90%
Taylor Devices 3.52% 3.11% 2.66%

Dividends

Altra Industrial Motion pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Taylor Devices does not pay a dividend. Altra Industrial Motion pays out 33.2% of its earnings in the form of a dividend. Altra Industrial Motion has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Altra Industrial Motion and Taylor Devices’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altra Industrial Motion $876.74 million 2.07 $51.42 million $2.05 13.73
Taylor Devices $24.36 million 1.79 $440,000.00 N/A N/A

Altra Industrial Motion has higher revenue and earnings than Taylor Devices.

Insider & Institutional Ownership

91.9% of Altra Industrial Motion shares are held by institutional investors. Comparatively, 30.1% of Taylor Devices shares are held by institutional investors. 3.2% of Altra Industrial Motion shares are held by company insiders. Comparatively, 4.8% of Taylor Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Altra Industrial Motion beats Taylor Devices on 12 of the 15 factors compared between the two stocks.

Altra Industrial Motion Company Profile

Altra Industrial Motion Corp. designs, produces, and markets mechanical power transmission components worldwide. The company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes; and Gearing. It offers coupling products under the Ameridrives, Bibby, Lamiflex, TB Wood's, Huco Dynatork, Guardian, and Stromag brands for food processing, oil and gas, power generation, material handling, medical, metals, mining, and mobile off-highway markets; and heavy duty clutches and brakes under the Wichita Clutch, Twiflex, Industrial Clutch, Svendborg Brakes, and Stromag brands for use in metal forming, oil and gas drilling platforms, mining, material handling, marine, and wind turbine applications. The company also provides overrunning clutches under the Formsprag, Marland, and Stieber brands used in conveyors, gear reducers, hoists and cranes, mining machinery, machine tools, paper machinery, and other specialty machinery, as well as aerospace and defense market; and engineered belted drives under the TB Wood's brand for aggregate, energy, chemical, and material handling markets. In addition, it offers electromagnetic clutches and brakes under the Warner Electric, Inertia Dynamics, Matrix, and Stromag brands for material handling, forklift, elevator, medical mobility, mobile off-highway, baggage handling, and plant productivity applications, as well as for walk-behind mowers, residential lawn tractors, and commercial mowers; gears under the Boston Gear, Nuttall Gear, Delroyd, and Bauer Gear Motor brands that are used in industrial, material handling, mixing, transportation, and food processing applications; and engineered bearing assemblies under the Kilian brand name for use in general industrial and automotive markets. The company was formerly known as Altra Holdings, Inc. and changed its name to Altra Industrial Motion Corp. in November 2013. The company was founded in 2004 and is headquartered in Braintree, Massachusetts.

Taylor Devices Company Profile

Taylor Devices, Inc. designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally. The company's products include seismic dampers that are designed to ameliorate the effects of earthquake tremors on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes, ships, container ships, railroad cars, truck docks, ladle and ingot cars, ore trolleys, and car stops. Its products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special military and aerospace applications. The company markets its products through a network of sales representatives and distributors. Taylor Devices, Inc. was founded in 1955 and is headquartered in North Tonawanda, New York.

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