Badger Meter (NYSE: BMI) and Allied Motion Technologies (NASDAQ:AMOT) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitabiliy, dividends, analyst recommendations and valuation.
This table compares Badger Meter and Allied Motion Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allied Motion Technologies||3.62%||11.99%||4.85%|
This is a summary of recent ratings and target prices for Badger Meter and Allied Motion Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allied Motion Technologies||0||1||0||0||2.00|
Badger Meter currently has a consensus target price of $44.50, suggesting a potential upside of 13.09%. Given Badger Meter’s stronger consensus rating and higher possible upside, analysts clearly believe Badger Meter is more favorable than Allied Motion Technologies.
Earnings & Valuation
This table compares Badger Meter and Allied Motion Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Badger Meter||$394.80 million||2.90||$75.73 million||$1.13||34.67|
|Allied Motion Technologies||$243.57 million||1.03||$27.65 million||$0.95||27.94|
Badger Meter has higher revenue and earnings than Allied Motion Technologies. Allied Motion Technologies is trading at a lower price-to-earnings ratio than Badger Meter, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
84.5% of Badger Meter shares are held by institutional investors. Comparatively, 38.9% of Allied Motion Technologies shares are held by institutional investors. 4.5% of Badger Meter shares are held by company insiders. Comparatively, 30.8% of Allied Motion Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Badger Meter has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Allied Motion Technologies has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.
Badger Meter pays an annual dividend of $0.46 per share and has a dividend yield of 1.2%. Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Badger Meter pays out 40.5% of its earnings in the form of a dividend. Allied Motion Technologies pays out 10.5% 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. Badger Meter has increased its dividend for 15 consecutive years. Badger Meter is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Badger Meter beats Allied Motion Technologies on 14 of the 17 factors compared between the two stocks.
About Badger Meter
Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, control and communication solutions, serving water utilities, municipalities, and commercial and industrial customers around the world. The Company’s products measure water, oil, chemicals and other fluids, provide and communicate timely measurement data. Its product lines include two categories: sales of water meters and related technologies to municipal water utilities (municipal water), and sales of meters to various industries for water and other fluids (flow instrumentation). The municipal water offering includes mechanical and ultrasonic (electronic) water meters and related technologies and services used by water utilities as the basis for generating water and wastewater. The flow instrumentation category includes the sale of meters and valves around the world to measure and control materials flowing through a pipe or pipeline, including air, steam, oil, and other liquids and gases.
About Allied Motion Technologies
Allied Motion Technologies Inc. designs, manufactures and sells precision and specialty motion control components and systems used in a range of industries. The Company serves various markets, including vehicle, medical, aerospace and defense, electronics and industrial. It focuses on motion control applications. It is engaged in developing electro-magnetic, mechanical and electronic motion technology. It operates in the design and manufacture of motion control products, marketed to original equipment manufacturers and end users segment. Its products are used in the handling, inspection, and testing of components and final products, such as printers, tunable lasers and spectrum analyzers for the fiber optic industry, and test and processing equipment for the semiconductor manufacturing industry. Its products are used in a range of medical, industrial and commercial aviation applications, such as dialysis equipment, industrial ink jet printers and cash dispensers.
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