Critical Analysis: Puradyn Filter Technologies (OTCMKTS:PFTI) and Atmus Filtration Technologies (NYSE:ATMU)

Puradyn Filter Technologies (OTCMKTS:PFTI) and Atmus Filtration Technologies (NYSE:ATMU) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Puradyn Filter Technologies has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Puradyn Filter Technologies	N/A	N/A	N/A
Atmus Filtration Technologies	10.84%	134.28%	17.61%

Insider and Institutional Ownership

32.7% of Atmus Filtration Technologies shares are held by institutional investors. 37.3% of Puradyn Filter Technologies shares are held by company insiders. Comparatively, 0.4% of Atmus Filtration Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Puradyn Filter Technologies and Atmus Filtration Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Puradyn Filter Technologies	0	0	0	0	0.00
Atmus Filtration Technologies	0	1	4	0	2.80

Atmus Filtration Technologies has a consensus target price of $44.80, indicating a potential upside of 2.47%. Given Atmus Filtration Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Atmus Filtration Technologies is more favorable than Puradyn Filter Technologies.

Earnings & Valuation

This table compares Puradyn Filter Technologies and Atmus Filtration Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Puradyn Filter Technologies	N/A	N/A	N/A	N/A	N/A
Atmus Filtration Technologies	$1.63 billion	2.23	$171.30 million	$2.15	20.33

Atmus Filtration Technologies has higher revenue and earnings than Puradyn Filter Technologies.

Summary

Atmus Filtration Technologies beats Puradyn Filter Technologies on 8 of the 10 factors compared between the two stocks.

About Puradyn Filter Technologies

Puradyn Filter Technologies, Inc. designs, manufactures, markets, and distributes bypass oil filtration systems for use with internal combustion engines and hydraulic equipment that use lubricating oil worldwide. The company offers its products under the Puradyn brand name. Its Puradyn system cleans oil by providing a second circuit of oil filtration and treatment to continually remove solid and liquid contaminants from the oil through a filtration and absorption process. The company also manufactures replacement filter elements for the Puradyn system. Its products are marketed to various industries that include hydraulic applications, and other users of engines or equipment that utilize up to 50 weight oil for lubrication. The company sells its products directly, as well as through manufacturer's representatives, distributors, or other agents to OEMs, other distributors, and national accounts. It serves oil and gas services, power generation, construction and forestry, commercial marine, mining, and transportation industries. The company was founded in 1987 and is based in Boynton Beach, Florida.

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.