Frequency Electronics (NASDAQ:FEIM) and Allied Motion Technologies (NASDAQ:AMOT) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Earnings and Valuation
This table compares Frequency Electronics and Allied Motion Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Frequency Electronics||$39.41 million||2.44||-$23.77 million||N/A||N/A|
|Allied Motion Technologies||$252.01 million||1.91||$8.03 million||$1.22||41.54|
Allied Motion Technologies has higher revenue and earnings than Frequency Electronics.
Institutional and Insider Ownership
46.4% of Frequency Electronics shares are held by institutional investors. Comparatively, 48.7% of Allied Motion Technologies shares are held by institutional investors. 41.7% of Frequency Electronics shares are held by insiders. Comparatively, 22.9% of Allied Motion Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Allied Motion Technologies pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Frequency Electronics does not pay a dividend. Allied Motion Technologies pays out 9.8% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Frequency Electronics and Allied Motion Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allied Motion Technologies||0||0||2||0||3.00|
Allied Motion Technologies has a consensus target price of $66.00, suggesting a potential upside of 30.23%. Given Allied Motion Technologies’ higher probable upside, analysts clearly believe Allied Motion Technologies is more favorable than Frequency Electronics.
This table compares Frequency Electronics and Allied Motion Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allied Motion Technologies||4.43%||17.59%||7.92%|
Risk & Volatility
Frequency Electronics has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Allied Motion Technologies has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.
Allied Motion Technologies beats Frequency Electronics on 10 of the 13 factors compared between the two stocks.
About Frequency Electronics
Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision time, and frequency generation and synchronization primarily incorporating global positioning system technologies into communications systems, computer networks, test equipment, and military command and control terminals for ground and satellite link applications. The company's products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.
About Allied Motion Technologies
Allied Motion Technologies, Inc. designs, manufactures, and sells precision and specialty motion control components and systems that are used in a range of industries worldwide. It provides automotive brushless (BL) DC motors, power steering solutions, and special purpose motors; fractional horsepower permanent magnet DC and BLDC motors serving a range of original equipment applications; and high performance BLDC motors, including servo motors, frameless motors, torque motors, slot less motors, high resolution encoders, and motor/encoder assemblies. The company also offers gearing solutions in stand-alone and integrated gearing/motor configurations; and advanced electronic motion control products and custom solutions, including integrated power electronics, digital controls, and network communications for motor control and power conversion. In addition, it provides fractional horsepower BLDC outer rotor motors and traditional BLDC motor part sets; synchronous BLDC servo motor solutions and asynchronous BLDC motors; and trolleys for use in medical environments, as well as electronic controls and platform based integrated steering system solutions. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and electronics/industrial markets through direct sales force, as well as authorized manufacturers' representatives, agents, and distributors. Allied Motion Technologies Inc. was founded in 1962 and is headquartered in Amherst, New York.
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