Analyzing Luxfer (NYSE:LXFR) & Alta Equipment Group (NYSE:ALTG)

Luxfer (NYSE:LXFR) and Alta Equipment Group (NYSE:ALTG) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Luxfer has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Institutional & Insider Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are owned by institutional investors. 2.0% of Luxfer shares are owned by company insiders. Comparatively, 20.5% of Alta Equipment Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Luxfer and Alta Equipment Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	2	0	1	2.67
Alta Equipment Group	1	2	1	0	2.00

Alta Equipment Group has a consensus target price of $8.75, suggesting a potential upside of 32.58%. Given Alta Equipment Group’s higher possible upside, analysts clearly believe Alta Equipment Group is more favorable than Luxfer.

Profitability

This table compares Luxfer and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luxfer	1.56%	12.14%	7.25%
Alta Equipment Group	-4.33%	-3,253.61%	-5.70%

Valuation & Earnings

This table compares Luxfer and Alta Equipment Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	1.20	$7.70 million	$0.22	77.75
Alta Equipment Group	$1.84 billion	0.12	-$80.30 million	($2.53)	-2.61

Luxfer has higher earnings, but lower revenue than Alta Equipment Group. Alta Equipment Group is trading at a lower price-to-earnings ratio than Luxfer, indicating that it is currently the more affordable of the two stocks.

Summary

Luxfer beats Alta Equipment Group on 10 of the 15 factors compared between the two stocks.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.