Surge Component (OTCMKTS:SPRS) versus Allient (NASDAQ:ALNT) Critical Comparison

Surge Component (OTCMKTS:SPRS) and Allient (NASDAQ:ALNT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Surge Component and Allient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surge Component	0	0	0	0	0.00
Allient	0	4	3	0	2.43

Allient has a consensus price target of $63.60, suggesting a potential downside of 16.62%. Given Allient’s stronger consensus rating and higher probable upside, analysts plainly believe Allient is more favorable than Surge Component.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surge Component	2.80%	4.98%	3.87%
Allient	3.97%	12.53%	6.21%

Institutional and Insider Ownership

61.6% of Allient shares are held by institutional investors. 56.0% of Surge Component shares are held by company insiders. Comparatively, 15.0% of Allient shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Surge Component has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Allient has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surge Component	$36.32 million	0.51	$1.14 million	$0.18	17.78
Allient	$554.48 million	2.34	$22.03 million	$1.32	57.79

Allient has higher revenue and earnings than Surge Component. Surge Component 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 Surge Component on 13 of the 14 factors compared between the two stocks.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

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.