Comparing Atmus Filtration Technologies (NYSE:ATMU) and Kornit Digital (NASDAQ:KRNT)

Kornit Digital (NASDAQ:KRNT) and Atmus Filtration Technologies (NYSE:ATMU) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current recommendations for Kornit Digital and Atmus Filtration Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kornit Digital	1	3	2	0	2.17
Atmus Filtration Technologies	0	3	3	0	2.50

Kornit Digital presently has a consensus target price of $21.50, suggesting a potential upside of 40.80%. Atmus Filtration Technologies has a consensus target price of $62.00, suggesting a potential upside of 38.55%. Given Kornit Digital’s higher probable upside, analysts clearly believe Kornit Digital is more favorable than Atmus Filtration Technologies.

Institutional & Insider Ownership

92.8% of Kornit Digital shares are held by institutional investors. Comparatively, 32.7% of Atmus Filtration Technologies shares are held by institutional investors. 0.2% of Kornit Digital 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Kornit Digital has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kornit Digital and Atmus Filtration Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kornit Digital	$208.20 million	3.15	-$13.52 million	($0.48)	-31.81
Atmus Filtration Technologies	$1.76 billion	2.07	$207.40 million	$2.61	17.15

Atmus Filtration Technologies has higher revenue and earnings than Kornit Digital. Kornit Digital is trading at a lower price-to-earnings ratio than Atmus Filtration Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kornit Digital	-9.42%	-1.00%	-0.91%
Atmus Filtration Technologies	11.32%	59.85%	14.66%

Summary

Atmus Filtration Technologies beats Kornit Digital on 10 of the 14 factors compared between the two stocks.

About Kornit Digital

Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. Its solutions include digital printing systems, ink and other consumables, associated software, and value-added services. The company's products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and system upgrade kits, maintenance and support, consulting, and professional services. It serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh Haayin, Israel.

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.