nVent Electric (NYSE:NVT – Get Free Report) and Allient (NASDAQ:ALNT – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
Dividends
nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. nVent Electric pays out 27.9% of its earnings in the form of a dividend. Allient pays out 11.2% 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. nVent Electric has raised its dividend for 2 consecutive years. nVent Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
90.0% of nVent Electric shares are owned by institutional investors. Comparatively, 61.6% of Allient shares are owned by institutional investors. 1.7% of nVent Electric shares are owned by insiders. Comparatively, 15.0% of Allient shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 11.37% | 16.82% | 9.03% |
| Allient | 4.25% | 12.47% | 6.37% |
Earnings & Valuation
This table compares nVent Electric and Allient”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $3.89 billion | 6.63 | $710.20 million | $3.01 | 53.00 |
| Allient | $554.48 million | 2.71 | $22.03 million | $1.43 | 61.80 |
nVent Electric has higher revenue and earnings than Allient. nVent Electric is trading at a lower price-to-earnings ratio than Allient, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for nVent Electric and Allient, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 1 | 12 | 4 | 3.18 |
| Allient | 0 | 2 | 4 | 0 | 2.67 |
nVent Electric presently has a consensus target price of $190.57, indicating a potential upside of 19.47%. Allient has a consensus target price of $79.83, indicating a potential downside of 9.66%. Given nVent Electric’s stronger consensus rating and higher possible upside, equities analysts clearly believe nVent Electric is more favorable than Allient.
Risk & Volatility
nVent Electric has a beta of 1.36, meaning that its share price is 36% more 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
nVent Electric beats Allient on 14 of the 18 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, 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.
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