Comparing Nextpower (NASDAQ:NXT) and Allient (NASDAQ:ALNT)

Allient (NASDAQ:ALNT) and Nextpower (NASDAQ:NXT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Allient and Nextpower, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	0	5	1	3.17
Nextpower	0	4	22	2	2.93

Allient presently has a consensus price target of $84.00, suggesting a potential downside of 7.98%. Nextpower has a consensus price target of $144.96, suggesting a potential upside of 81.68%. Given Nextpower’s higher probable upside, analysts clearly believe Nextpower is more favorable than Allient.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$554.48 million	2.80	$22.03 million	$1.70	53.69
Nextpower	$3.56 billion	3.40	$585.88 million	$3.86	20.67

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

Insider & Institutional Ownership

61.6% of Allient shares are owned by institutional investors. Comparatively, 67.4% of Nextpower shares are owned by institutional investors. 15.0% of Allient shares are owned by insiders. Comparatively, 0.8% of Nextpower shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Allient has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Nextpower has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allient	4.98%	13.55%	7.05%
Nextpower	16.36%	26.29%	15.02%

Summary

Nextpower beats Allient on 12 of the 15 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 Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.