Head-To-Head Survey: Ralliant (NYSE:RAL) versus Vontier (NYSE:VNT)

Ralliant (NYSE:RAL) and Vontier (NYSE:VNT) are both mid-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Volatility & Risk

Ralliant has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Ralliant and Vontier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralliant	-52.10%	20.40%	8.62%
Vontier	11.27%	39.53%	11.74%

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Ralliant pays out -1.9% of its earnings in the form of a dividend. Vontier pays out 4.1% 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. Ralliant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

95.8% of Vontier shares are held by institutional investors. 0.4% of Ralliant shares are held by company insiders. Comparatively, 1.1% of Vontier shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ralliant and Vontier”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralliant	$2.07 billion	3.60	-$1.22 billion	($10.43)	-6.45
Vontier	$3.08 billion	1.85	$406.10 million	$2.41	17.46

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ralliant and Vontier, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralliant	0	5	7	0	2.58
Vontier	1	3	4	0	2.38

Ralliant currently has a consensus target price of $78.40, suggesting a potential upside of 16.47%. Vontier has a consensus target price of $41.86, suggesting a potential downside of 0.54%. Given Ralliant’s stronger consensus rating and higher probable upside, analysts plainly believe Ralliant is more favorable than Vontier.

About Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.