Allient (NASDAQ:ALNT) vs. Orbit International (OTCMKTS:ORBT) Financial Analysis

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

Institutional and Insider Ownership

61.6% of Allient shares are held by institutional investors. 15.6% of Allient shares are held by insiders. Comparatively, 11.3% of Orbit International 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.

Profitability

This table compares Allient and Orbit International’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%
Orbit International	-11.59%	-19.05%	-13.10%

Dividends

Allient pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Orbit International pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Allient pays out 14.0% of its earnings in the form of a dividend. Orbit International pays out -1.1% 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.

Earnings & Valuation

This table compares Allient and Orbit International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$529.97 million	1.76	$13.17 million	$0.86	63.85
Orbit International	$29.90 million	0.56	-$650,000.00	($0.95)	-5.00

Allient has higher revenue and earnings than Orbit International. Orbit International 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

Allient has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Orbit International has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Allient and Orbit International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	4	0	0	2.00
Orbit International	0	0	0	0	0.00

Allient presently has a consensus price target of $47.50, suggesting a potential downside of 13.49%. Given Allient’s stronger consensus rating and higher possible upside, analysts clearly believe Allient is more favorable than Orbit International.

Summary

Allient beats Orbit International on 14 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 Orbit International

Orbit International Corp. engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories worldwide. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment designs, manufactures, and sells customized electronic components and subsystems. This segment offers remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, and command display units, as well as provides LCD display modules, military simulation and training bezels, electronic control assemblies, and multi-function displays design and enhancement services. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, armament systems, and commercial-off-the-shelf power solutions, as well as inverters. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is based in Hauppauge, New York.