Head to Head Review: Allient (NASDAQ:ALNT) and CPS Technologies (NASDAQ:CPSH)

Allient (NASDAQ:ALNT) and CPS Technologies (NASDAQ:CPSH) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

61.6% of Allient shares are held by institutional investors. Comparatively, 11.2% of CPS Technologies shares are held by institutional investors. 15.0% of Allient shares are held by company insiders. Comparatively, 13.2% of CPS Technologies shares are held by company 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.

Valuation & Earnings

This table compares Allient and CPS Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allient	$554.48 million	2.68	$22.03 million	$1.43	61.16
CPS Technologies	$32.60 million	2.17	$420,000.00	N/A	N/A

Allient has higher revenue and earnings than CPS Technologies.

Profitability

This table compares Allient and CPS Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allient	4.25%	12.47%	6.37%
CPS Technologies	0.10%	0.16%	0.13%

Risk and Volatility

Allient has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, CPS Technologies has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Allient and CPS Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allient	0	2	4	0	2.67
CPS Technologies	1	1	1	0	2.00

Allient currently has a consensus price target of $79.83, indicating a potential downside of 8.72%. CPS Technologies has a consensus price target of $6.00, indicating a potential upside of 53.06%. Given CPS Technologies’ higher probable upside, analysts clearly believe CPS Technologies is more favorable than Allient.

Summary

Allient beats CPS Technologies on 10 of the 12 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 CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.