Allient (NASDAQ:ALNT) versus Hubbell (NYSE:HUBB) Head-To-Head Contrast

Hubbell (NYSE:HUBB) and Allient (NASDAQ:ALNT) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Dividends

Hubbell pays an annual dividend of $5.68 per share and has a dividend yield of 1.2%. Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.1%. Hubbell pays out 33.6% of its earnings in the form of a dividend. Allient pays out 9.4% 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. Hubbell has raised its dividend for 17 consecutive years. Hubbell is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

88.2% of Hubbell shares are owned by institutional investors. Comparatively, 61.6% of Allient shares are owned by institutional investors. 0.6% of Hubbell shares are owned by company insiders. Comparatively, 15.0% of Allient shares are owned 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.

Profitability

This table compares Hubbell and Allient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hubbell	14.49%	27.11%	11.48%
Allient	4.98%	13.55%	7.05%

Risk & Volatility

Hubbell has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Allient has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hubbell and Allient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hubbell	0	5	5	1	2.64
Allient	0	1	4	1	3.00

Hubbell currently has a consensus price target of $551.78, indicating a potential upside of 12.84%. Allient has a consensus price target of $84.00, indicating a potential downside of 29.21%. Given Hubbell’s higher probable upside, analysts clearly believe Hubbell is more favorable than Allient.

Valuation & Earnings

This table compares Hubbell and Allient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hubbell	$6.22 billion	4.15	$887.10 million	$16.89	28.95
Allient	$554.48 million	3.64	$22.03 million	$1.70	69.80

Hubbell has higher revenue and earnings than Allient. Hubbell is trading at a lower price-to-earnings ratio than Allient, indicating that it is currently the more affordable of the two stocks.

Summary

Hubbell beats Allient on 12 of the 17 factors compared between the two stocks.

About Hubbell

Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.

About Allient

Allient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries in the United States, Canada, South America, Europe, and Asia-Pacific. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products, as well as nano precision positioning systems, servo control systems, and digital servo amplifiers and drives. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers’ representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.