Financial Analysis: Allient (NASDAQ:ALNT) & TT Electronics (OTCMKTS:TTGPF)

TT Electronics (OTCMKTS:TTGPF) and Allient (NASDAQ:ALNT) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

61.6% of Allient shares are owned by institutional investors. 15.6% of Allient shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for TT Electronics and Allient, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TT Electronics	0	2	0	0	2.00
Allient	0	4	1	1	2.50

Allient has a consensus target price of $50.33, suggesting a potential downside of 11.43%. Given Allient’s stronger consensus rating and higher probable upside, analysts clearly believe Allient is more favorable than TT Electronics.

Earnings and Valuation

This table compares TT Electronics and Allient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TT Electronics	$665.93 million	0.53	-$68.24 million	N/A	N/A
Allient	$529.97 million	1.82	$13.17 million	$1.12	50.74

Allient has lower revenue, but higher earnings than TT Electronics.

Profitability

This table compares TT Electronics and Allient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TT Electronics	N/A	N/A	N/A
Allient	3.50%	11.49%	5.52%

Volatility and Risk

TT Electronics has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Allient has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Summary

Allient beats TT Electronics on 12 of the 13 factors compared between the two stocks.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.

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.