Financial Comparison: Allient (NASDAQ:ALNT) & Nidec (OTCMKTS:NJDCY)

Allient (NASDAQ:ALNT) and Nidec (OTCMKTS:NJDCY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Dividends

Allient pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Nidec pays an annual dividend of $0.05 per share and has a dividend yield of 1.1%. Allient pays out 14.0% of its earnings in the form of a dividend. Nidec pays out 21.7% 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.

Insider & Institutional Ownership

61.6% of Allient shares are held by institutional investors. Comparatively, 0.2% of Nidec shares are held by institutional investors. 15.6% of Allient shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Allient has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Nidec has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Allient and Nidec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	2	0	0	2.00
Nidec	0	1	0	0	2.00

Allient currently has a consensus price target of $35.00, indicating a potential downside of 21.30%. Given Allient’s higher possible upside, analysts clearly believe Allient is more favorable than Nidec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allient	2.75%	9.97%	4.67%
Nidec	6.06%	9.18%	4.79%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$529.97 million	1.42	$13.17 million	$0.86	51.71
Nidec	$17.12 billion	2.45	$1.11 billion	$0.23	19.13

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

Summary

Allient beats Nidec on 8 of the 14 factors compared between the two stocks.

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.

About Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..