Systemax (NYSE:SYX) and Alta Equipment Group (NYSE:ALTG) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Institutional and Insider Ownership
29.1% of Systemax shares are owned by institutional investors. Comparatively, 63.2% of Alta Equipment Group shares are owned by institutional investors. 67.0% of Systemax shares are owned by 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.
This table compares Systemax and Alta Equipment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alta Equipment Group||N/A||-22.26%||-3.45%|
Volatility and Risk
Systemax has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Systemax and Alta Equipment Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alta Equipment Group||0||1||0||0||2.00|
Alta Equipment Group has a consensus target price of $9.00, suggesting a potential upside of 7.27%. Given Alta Equipment Group’s higher probable upside, analysts clearly believe Alta Equipment Group is more favorable than Systemax.
Valuation and Earnings
This table compares Systemax and Alta Equipment Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Systemax||$946.90 million||0.96||$48.50 million||$1.32||18.36|
|Alta Equipment Group||N/A||N/A||$10,000.00||($0.56)||-14.98|
Systemax has higher revenue and earnings than Alta Equipment Group. Alta Equipment Group is trading at a lower price-to-earnings ratio than Systemax, indicating that it is currently the more affordable of the two stocks.
Systemax beats Alta Equipment Group on 8 of the 11 factors compared between the two stocks.
Systemax Inc. operates as a direct marketer of brand name and private label industrial and business equipment and supplies in North America. It sells a range of maintenance, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance products, furniture and office products, workbenches and shop desks, HVAC/R and fans, safety and security products, outdoor and grounds maintenance products, tools and instruments, and office and school supplies. The company also sells plumbing products and pumps, packaging products and supplies, electrical and lighting products, food service products and appliances, raw materials and building supplies, motors and power transmission, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance products, and fasteners and hardware. It offers its products under the Global, GlobalIndustrial.com, Nexel Paramount, and Interion brand names. The company offers its products to for-profit businesses, educational organizations, and government entities through its relationship marketers, catalog mailings, and e-commerce sites. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York.
About Alta Equipment Group
Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates in two segments, Industrial Equipment and Construction Equipment. The company sells and rents new and used equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment, and other industrial and construction equipment. It also provides parts and equipment, as well as repair and maintenance services. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.
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