Analyzing Atmus Filtration Technologies (NYSE:ATMU) and THK (OTCMKTS:THKLY)

Atmus Filtration Technologies (NYSE:ATMU) and THK (OTCMKTS:THKLY) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

32.7% of Atmus Filtration Technologies shares are owned by institutional investors. 0.4% of Atmus Filtration Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atmus Filtration Technologies and THK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmus Filtration Technologies	0	3	3	0	2.50
THK	0	1	0	0	2.00

Atmus Filtration Technologies presently has a consensus target price of $62.00, suggesting a potential upside of 33.33%. Given Atmus Filtration Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Atmus Filtration Technologies is more favorable than THK.

Profitability

This table compares Atmus Filtration Technologies and THK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atmus Filtration Technologies	11.32%	59.85%	14.66%
THK	N/A	N/A	N/A

Volatility & Risk

Atmus Filtration Technologies has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, THK has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Dividends

Atmus Filtration Technologies pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. THK pays an annual dividend of $0.23 per share and has a dividend yield of 1.2%. Atmus Filtration Technologies pays out 9.2% of its earnings in the form of a dividend. THK pays out 76.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Atmus Filtration Technologies and THK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmus Filtration Technologies	$1.76 billion	2.15	$207.40 million	$2.61	17.82
THK	$1.61 billion	2.95	-$468.27 million	$0.30	66.47

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

Summary

Atmus Filtration Technologies beats THK on 12 of the 16 factors compared between the two stocks.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.

About THK

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.