Ouster (NYSE:OUST) & Altra Industrial Motion (NASDAQ:AIMC) Critical Review

Ouster (NYSE:OUST) and Altra Industrial Motion (NASDAQ:AIMC) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

84.1% of Ouster shares are held by institutional investors. Comparatively, 99.6% of Altra Industrial Motion shares are held by institutional investors. 0.9% of Altra Industrial Motion shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ouster and Altra Industrial Motion, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ouster 0 0 4 0 3.00
Altra Industrial Motion 0 1 4 0 2.80

Ouster currently has a consensus price target of $16.00, indicating a potential upside of 22.98%. Altra Industrial Motion has a consensus price target of $63.25, indicating a potential downside of 2.38%. Given Ouster’s stronger consensus rating and higher probable upside, analysts clearly believe Ouster is more favorable than Altra Industrial Motion.

Profitability

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

Net Margins Return on Equity Return on Assets
Ouster N/A N/A N/A
Altra Industrial Motion 7.39% 10.46% 4.84%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ouster N/A N/A -$2.70 million N/A N/A
Altra Industrial Motion $1.73 billion 2.43 -$25.50 million $2.88 22.50

Ouster has higher earnings, but lower revenue than Altra Industrial Motion.

Summary

Altra Industrial Motion beats Ouster on 6 of the 9 factors compared between the two stocks.

Ouster Company Profile

Ouster, Inc. designs and manufactures digital lidar sensors for industrial automation, smart infrastructure, robotics, and automotive markets. Its product portfolio includes OS0, and ultra-wide view digital lidar; OS1, a mid-range digital lidar; OS2, a long-range digital lidar; and ES2 digital lidar. The company is based in San Francisco, California.

Altra Industrial Motion Company Profile

Altra Industrial Motion Corp. designs, produces, and markets a range of electromechanical power transmission motion control products for use in various motion related applications, and high-volume manufacturing and non-manufacturing processes worldwide. It operates in two segments, Power Transmission Technologies (PTT) and Automation & Specialty (A&S). The PTT segment offers couplings, such as gear couplings, diaphragm and disc couplings, elastomeric couplings, miniature and precision couplings, universal joints, mill spindles, and shaft locking devices under the Ameridrives, Bibby, Guardian, Huco, Lamiflex, Stromag, and TB Wood's brands; clutches and brakes under the Industrial Clutch, Formsprag, Stieber, Stromag, Svendborg, Twiflex, and Wichita brands; electromagnetic clutches and brakes under the Inertia Dynamics, Matrix, Stromag, and Warner Electric brands; and gears under the Bauer Gear Motor, Boston Gear, Delroyd, and Nuttall brands. The A&S segment provides rotary precision motion solutions, including servo and stepper motors, precision linear actuators, and electronic drives and motion controllers, as well as related software under the Kollmorgen brand; and miniature motors, as well as motion control products, such as brush and brushless DC, can stack, and disc magnet motors under the Portescap brand. This segment also offers linear bearings, guides, glides, lead and ball screws, industrial linear actuators, resolvers, and inductors for the transition of rotary motion to linear motion under the Thomson brand; and heavy-duty diesel engine brake systems and valve actuation mechanisms, including compression release, and bleeder and exhaust brakes under the Jacobs Vehicle Systems brand. The company was formerly known as Altra Holdings, Inc. and changed its name to Altra Industrial Motion Corp. in November 2013. Altra Industrial Motion Corp. was incorporated in 2004 and is headquartered in Braintree, Massachusetts.

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