Financial Comparison: Allient (NASDAQ:ALNT) and Nextpower (NASDAQ:NXT)

Nextpower (NASDAQ:NXT) and Allient (NASDAQ:ALNT) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nextpower and Allient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	4	23	1	2.89
Allient	0	0	5	1	3.17

Nextpower currently has a consensus target price of $144.96, indicating a potential upside of 76.22%. Allient has a consensus target price of $84.00, indicating a potential downside of 12.45%. Given Nextpower’s higher probable upside, equities analysts clearly believe Nextpower is more favorable than Allient.

Valuation & Earnings

This table compares Nextpower and Allient”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$3.56 billion	3.51	$585.88 million	$3.86	21.31
Allient	$574.78 million	2.84	$22.03 million	$1.70	56.44

Nextpower has higher revenue and earnings than Allient. Nextpower is trading at a lower price-to-earnings ratio than Allient, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.4% of Nextpower shares are held by institutional investors. Comparatively, 61.6% of Allient shares are held by institutional investors. 0.8% of Nextpower shares are held by company insiders. Comparatively, 15.0% of Allient shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextpower	16.36%	26.29%	15.02%
Allient	4.98%	13.55%	7.05%

Volatility and Risk

Nextpower has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Summary

Nextpower beats Allient on 11 of the 14 factors compared between the two stocks.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.

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.