Altra Industrial Motion Corp. (NASDAQ: AIMC) and Manitex International (NASDAQ:MNTX) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

98.2% of Altra Industrial Motion Corp. shares are held by institutional investors. Comparatively, 66.1% of Manitex International shares are held by institutional investors. 3.2% of Altra Industrial Motion Corp. shares are held by insiders. Comparatively, 6.8% of Manitex International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Altra Industrial Motion Corp. 4.17% 16.50% 6.29%
Manitex International -15.69% 2.31% 0.72%

Valuation & Earnings

This table compares Altra Industrial Motion Corp. and Manitex International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Altra Industrial Motion Corp. $784.57 million 1.65 $110.94 million $1.15 38.44
Manitex International $271.42 million 0.49 $5.69 million ($2.50) -3.24

Altra Industrial Motion Corp. has higher revenue and earnings than Manitex International. Manitex International is trading at a lower price-to-earnings ratio than Altra Industrial Motion Corp., indicating that it is currently the more affordable of the two stocks.

Dividends

Altra Industrial Motion Corp. pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Manitex International does not pay a dividend. Altra Industrial Motion Corp. pays out 59.1% of its earnings in the form of a dividend.

Risk and Volatility

Altra Industrial Motion Corp. has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Manitex International has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Altra Industrial Motion Corp. and Manitex International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altra Industrial Motion Corp. 0 1 2 0 2.67
Manitex International 0 0 2 0 3.00

Altra Industrial Motion Corp. presently has a consensus price target of $46.50, suggesting a potential upside of 5.20%. Manitex International has a consensus price target of $10.00, suggesting a potential upside of 23.61%. Given Manitex International’s stronger consensus rating and higher probable upside, analysts clearly believe Manitex International is more favorable than Altra Industrial Motion Corp..

Summary

Altra Industrial Motion Corp. beats Manitex International on 9 of the 15 factors compared between the two stocks.

Altra Industrial Motion Corp. Company Profile

Altra Industrial Motion Corp. is a designer, producer and marketer of a range of mechanical power transmission (MPT) components. The Company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes, and Gearing. It manufactures a range of couplings suitable for various industrial and specialty applications. The Electromagnetic Clutches and Brakes segment products include brakes and clutches that are used to electronically slow, stop, engage or disengage equipment utilizing electromagnetic friction type connections. The Gearing segment product lines include vertical and horizontal gear drives, speed reducers and increasers, high-speed compressor drives, enclosed custom gear drives, various enclosed gear drive and gear motor configurations, and open gearing products, such as spur, helical, worm and miter/bevel gears. Its products are used to control and transmit power and torque in virtually any industrial application involving movement.

Manitex International Company Profile

Manitex International, Inc. is a provider of engineered specialty lifting and loading products. The Company operates in three business segments: the Lifting Equipment segment, the A.S.V., LLC (ASV) segment and the Equipment Distribution segment. Through its Lifting Equipment segment, the Company designs, manufactures and distributes a diverse group of products that serve various functions and are used in a range of industries. In the ASV segment, the Company manufactures a line of compact rubber tracked and skid steer loaders. In the Equipment Distribution segment, the Company markets products used primarily for infrastructure development and commercial construction applications that include road and bridge construction, general contracting, roofing, scrap handling, and sign construction and maintenance. The Company, through its subsidiary Manitex, Inc., markets a line of boom trucks, truck cranes and sign cranes.

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