Eaton (NYSE:ETN) & Allient (NASDAQ:ALNT) Head-To-Head Analysis

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

Dividends

Eaton pays an annual dividend of $4.40 per share and has a dividend yield of 1.1%. Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. Eaton pays out 44.8% of its earnings in the form of a dividend. Allient pays out 9.4% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eaton	12.75%	24.58%	9.98%
Allient	4.98%	13.55%	7.05%

Insider and Institutional Ownership

83.0% of Eaton shares are owned by institutional investors. Comparatively, 61.6% of Allient shares are owned by institutional investors. 0.1% of Eaton shares are owned by insiders. Comparatively, 15.0% of Allient shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Eaton and Allient”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eaton	$27.45 billion	5.52	$4.09 billion	$9.83	39.71
Allient	$554.48 million	2.84	$22.03 million	$1.70	54.49

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

Risk & Volatility

Eaton has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Eaton and Allient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eaton	0	2	20	1	2.96
Allient	0	2	4	0	2.67

Eaton currently has a consensus target price of $484.10, suggesting a potential upside of 24.00%. Allient has a consensus target price of $84.00, suggesting a potential downside of 9.33%. Given Eaton’s stronger consensus rating and higher probable upside, analysts clearly believe Eaton is more favorable than Allient.

Summary

Eaton beats Allient on 13 of the 17 factors compared between the two stocks.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.

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.