Amphenol (NYSE:APH) versus Ralliant (NYSE:RAL) Financial Contrast

Ralliant (NYSE:RAL) and Amphenol (NYSE:APH) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ralliant and Amphenol, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralliant	1	3	7	1	2.67
Amphenol	0	1	14	1	3.00

Ralliant presently has a consensus price target of $77.20, suggesting a potential upside of 12.23%. Amphenol has a consensus price target of $96.00, suggesting a potential upside of 18.56%. Given Amphenol’s stronger consensus rating and higher possible upside, analysts clearly believe Amphenol is more favorable than Ralliant.

Insider and Institutional Ownership

97.0% of Amphenol shares are held by institutional investors. 0.4% of Ralliant shares are held by insiders. Comparatively, 1.4% of Amphenol shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Ralliant has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ralliant and Amphenol”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralliant	$2.07 billion	3.68	-$1.22 billion	($10.85)	-6.34
Amphenol	$23.09 billion	8.65	$4.27 billion	$2.00	40.48

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

Profitability

This table compares Ralliant and Amphenol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralliant	-56.38%	14.97%	6.99%
Amphenol	17.73%	39.87%	14.80%

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Amphenol pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Ralliant pays out -1.8% of its earnings in the form of a dividend. Amphenol pays out 25.0% 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.

Summary

Amphenol beats Ralliant on 14 of the 16 factors compared between the two stocks.

About Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.

About Amphenol

Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.