Financial Comparison: Alta Equipment Group (NYSE:ALTG) and Diploma (OTCMKTS:DPLMF)

Diploma (OTCMKTS:DPLMF) and Alta Equipment Group (NYSE:ALTG) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Diploma and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diploma	N/A	N/A	N/A
Alta Equipment Group	-4.42%	-3,253.61%	-5.92%

Analyst Ratings

This is a summary of recent ratings for Diploma and Alta Equipment Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diploma	0	0	0	0	0.00
Alta Equipment Group	1	2	1	0	2.00

Alta Equipment Group has a consensus target price of $8.75, indicating a potential upside of 33.14%. Given Alta Equipment Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alta Equipment Group is more favorable than Diploma.

Valuation & Earnings

This table compares Diploma 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
Diploma	N/A	N/A	N/A	N/A	N/A
Alta Equipment Group	$1.84 billion	0.12	-$80.30 million	($2.57)	-2.56

Diploma has higher earnings, but lower revenue than Alta Equipment Group.

Insider and Institutional Ownership

73.6% of Alta Equipment Group shares are held by institutional investors. 20.5% of Alta Equipment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Alta Equipment Group beats Diploma on 6 of the 9 factors compared between the two stocks.

About Diploma

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, Continental Europe, North America, and internationally. It operates through three business sectors: Life Sciences, Seals, and Controls. The Life Sciences sector supplies technology-enabled products used in surgical procedures in operating theatres and endoscopy; testing equipment and services for clinical laboratories; and bio-pharma, food safety and testing, and other research-oriented products. It serves hospitals, clinical laboratories, and research facilities. The Seals sector supplies various seals, gaskets, cylinders, components, and kits used in heavy mobile machinery; and O-rings, fittings, hydraulic and industrial hoses, pneumatics products, pumps, and related accessories. The Controls sector offers wire and cabling, interconnect, specialty fasteners, and adhesive and industrial automation solutions for various applications. Diploma PLC was incorporated in 1999 and is based in London, the United Kingdom.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.