Analyzing Allient (NASDAQ:ALNT) and Nortech Systems (NASDAQ:NSYS)

Allient (NASDAQ:ALNT) and Nortech Systems (NASDAQ:NSYS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

61.6% of Allient shares are owned by institutional investors. Comparatively, 3.0% of Nortech Systems shares are owned by institutional investors. 14.9% of Allient shares are owned by insiders. Comparatively, 11.0% of Nortech Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Allient has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Profitability

This table compares Allient and Nortech Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allient	2.75%	9.97%	4.67%
Nortech Systems	-2.74%	-9.55%	-4.33%

Analyst Recommendations

This is a breakdown of recent recommendations for Allient and Nortech Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	3	0	0	2.00
Nortech Systems	1	0	0	0	1.00

Allient currently has a consensus price target of $35.00, suggesting a potential downside of 18.87%. Given Allient’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Allient is more favorable than Nortech Systems.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$529.97 million	1.38	$13.17 million	$0.86	50.16
Nortech Systems	$117.60 million	0.21	-$1.29 million	($1.17)	-7.69

Allient has higher revenue and earnings than Nortech Systems. Nortech Systems 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 Nortech Systems on 13 of the 13 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 Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.