nVent Electric (NYSE:NVT) vs. Allient (NASDAQ:ALNT) Head to Head Analysis

Allient (NASDAQ:ALNT) and nVent Electric (NYSE:NVT) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Volatility & Risk

Allient has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Dividends

Allient pays an annual dividend of $0.16 per share and has a dividend yield of 0.2%. nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Allient pays out 11.2% of its earnings in the form of a dividend. nVent Electric pays out 23.0% 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.

Valuation and Earnings

This table compares Allient and nVent Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$554.48 million	2.90	$22.03 million	$1.43	66.13
nVent Electric	$3.89 billion	6.75	$710.20 million	$3.66	44.34

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.

Profitability

This table compares Allient and nVent Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allient	4.25%	12.47%	6.37%
nVent Electric	12.38%	18.85%	10.30%

Institutional and Insider Ownership

61.6% of Allient shares are owned by institutional investors. Comparatively, 90.0% of nVent Electric shares are owned by institutional investors. 15.0% of Allient shares are owned by insiders. Comparatively, 1.7% of nVent Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Allient and nVent Electric, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	2	4	0	2.67
nVent Electric	0	0	14	3	3.18

Allient presently has a consensus price target of $79.83, suggesting a potential downside of 15.57%. nVent Electric has a consensus price target of $198.79, suggesting a potential upside of 22.49%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts plainly believe nVent Electric is more favorable than Allient.

Summary

nVent Electric beats Allient on 14 of the 18 factors compared between the two stocks.

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.

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.