Alta Equipment Group (NYSE:ALTG) vs. Sumitomo Heavy (OTCMKTS:SOHVY) Financial Survey

Alta Equipment Group (NYSE:ALTG) and Sumitomo Heavy (OTCMKTS:SOHVY) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Alta Equipment Group and Sumitomo Heavy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alta Equipment Group	0	1	2	2	3.20
Sumitomo Heavy	0	1	0	0	2.00

Alta Equipment Group currently has a consensus target price of $11.25, indicating a potential upside of 46.29%. Given Alta Equipment Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Alta Equipment Group is more favorable than Sumitomo Heavy.

Risk & Volatility

Alta Equipment Group has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Sumitomo Heavy has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Dividends

Alta Equipment Group pays an annual dividend of $0.23 per share and has a dividend yield of 3.0%. Sumitomo Heavy pays an annual dividend of $0.15 per share and has a dividend yield of 2.7%. Alta Equipment Group pays out -10.3% of its earnings in the form of a dividend. Sumitomo Heavy pays out 1,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alta Equipment Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Alta Equipment Group and Sumitomo Heavy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alta Equipment Group	-3.83%	-80.23%	-4.64%
Sumitomo Heavy	0.04%	4.30%	2.23%

Insider & Institutional Ownership

73.6% of Alta Equipment Group shares are owned by institutional investors. 19.9% of Alta Equipment Group shares are owned 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 Alta Equipment Group and Sumitomo Heavy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alta Equipment Group	$1.88 billion	0.13	-$62.10 million	($2.23)	-3.45
Sumitomo Heavy	$7.08 billion	0.38	$50.97 million	$0.01	553.00

Sumitomo Heavy has higher revenue and earnings than Alta Equipment Group. Alta Equipment Group is trading at a lower price-to-earnings ratio than Sumitomo Heavy, indicating that it is currently the more affordable of the two stocks.

Summary

Alta Equipment Group beats Sumitomo Heavy on 9 of the 17 factors compared between the two stocks.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.

About Sumitomo Heavy

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally. Its Mechatronics segment offers gearmotors, gearboxes, motion control drives, motors and inverters, drive solutions, precision positioning equipment, laser systems, control systems, motion components, and collaborative robot. The company's Industrial Machinery segment provides injection molding machines, cryocoolers, ion implanters, PET tracer production systems, vacuum coasting equipment, steel tube air forming, non-destructive inspections, clean room system, cast iron and steel rolls for hot rolling, and coolant systems. Its Logistics & Construction segment offers hydraulic excavators, crawler cranes, material handing systems, parking systems, transfer molding presses, cryopumps, proton therapy systems, forging presses, lifting magnets, spinning machines, dust collectors, surface grinding machines, extrusion coating line, road machinery, foundation machines, logistics systems, and forklifts. The company's Energy & Lifelines segment provides circulating fluidized bed (CFB) boilers, liquid air energy storage, electrostatic precipitators, evaporation and crystallization facilities, waste heat boilers, CFB scrubbers, flue gas denitrification systems, industrial wastewater treatment facilities, steam turbines, distillation technology and extractors, mixing vessels, and food and beverage manufacturing facilities. This segment also offers bubbling fluidized bed boilers, rotary kiln-type recycling facilities, ash handling systems, fluidized bed gasifiers, waste-to-energy plants baghouses, digital services, water and sewage treatment systems, process pumps, reactor vessels, coke oven machines, and oils tankers. The company provides IT solutions and security services. Sumitomo Heavy Industries, Ltd. was founded in 1888 and is headquartered in Tokyo, Japan.