Alta Equipment Group (NYSE:ALTG) vs. Tennant (NYSE:TNC) Financial Comparison

Tennant (NYSE:TNC) and Alta Equipment Group (NYSE:ALTG) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Tennant has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Profitability

This table compares Tennant and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	2.55%	14.87%	7.17%
Alta Equipment Group	-4.33%	-3,253.61%	-5.70%

Dividends

Tennant pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Alta Equipment Group pays an annual dividend of $0.22 per share and has a dividend yield of 3.3%. Tennant pays out 74.7% of its earnings in the form of a dividend. Alta Equipment Group pays out -8.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tennant has raised its dividend for 53 consecutive years. Alta Equipment Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tennant and Alta Equipment Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	0	2	1	1	2.75
Alta Equipment Group	1	2	1	0	2.00

Tennant presently has a consensus target price of $91.00, suggesting a potential upside of 6.29%. Alta Equipment Group has a consensus target price of $8.75, suggesting a potential upside of 33.02%. Given Alta Equipment Group’s higher possible upside, analysts clearly believe Alta Equipment Group is more favorable than Tennant.

Valuation & Earnings

This table compares Tennant and Alta Equipment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.20 billion	1.21	$43.80 million	$1.66	51.57
Alta Equipment Group	$1.82 billion	0.12	-$80.30 million	($2.53)	-2.60

Tennant has higher earnings, but lower revenue than Alta Equipment Group. Alta Equipment Group is trading at a lower price-to-earnings ratio than Tennant, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

93.3% of Tennant shares are held by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are held by institutional investors. 3.5% of Tennant shares are held by company insiders. Comparatively, 20.5% of Alta Equipment Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Tennant beats Alta Equipment Group on 11 of the 17 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.