Head to Head Comparison: Allison Transmission (NYSE:ALSN) & CECO Environmental (NASDAQ:CECO)

Allison Transmission (NYSE:ALSN) and CECO Environmental (NASDAQ:CECO) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Allison Transmission and CECO Environmental, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allison Transmission	0	3	4	2	2.89
CECO Environmental	1	0	8	1	2.90

Allison Transmission presently has a consensus price target of $131.57, suggesting a potential upside of 17.78%. CECO Environmental has a consensus price target of $102.38, suggesting a potential upside of 80.49%. Given CECO Environmental’s stronger consensus rating and higher possible upside, analysts clearly believe CECO Environmental is more favorable than Allison Transmission.

Volatility and Risk

Allison Transmission has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, CECO Environmental has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Insider & Institutional Ownership

96.9% of Allison Transmission shares are owned by institutional investors. Comparatively, 68.1% of CECO Environmental shares are owned by institutional investors. 1.1% of Allison Transmission shares are owned by insiders. Comparatively, 18.4% of CECO Environmental shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Allison Transmission and CECO Environmental”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allison Transmission	$4.40 billion	2.10	$623.00 million	$6.29	17.76
CECO Environmental	$774.38 million	4.29	$50.05 million	($0.69)	-82.20

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

Profitability

This table compares Allison Transmission and CECO Environmental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allison Transmission	12.02%	38.18%	9.99%
CECO Environmental	-3.39%	7.36%	3.41%

Summary

Allison Transmission beats CECO Environmental on 9 of the 15 factors compared between the two stocks.

About Allison Transmission

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.