Critical Contrast: Omnitek Engineering (OTCMKTS:OMTK) & Alta Equipment Group (NYSE:ALTG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Alta Equipment Group	-4.34%	-175.61%	-5.41%

Insider & Institutional Ownership

73.6% of Alta Equipment Group shares are owned by institutional investors. 45.5% of Omnitek Engineering shares are owned by company insiders. Comparatively, 19.2% of Alta Equipment Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Omnitek Engineering and Alta Equipment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Alta Equipment Group	2	2	1	2	2.43

Alta Equipment Group has a consensus price target of $11.00, suggesting a potential upside of 132.80%. Given Alta Equipment Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alta Equipment Group is more favorable than Omnitek Engineering.

Risk & Volatility

Omnitek Engineering has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Omnitek Engineering and Alta Equipment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.33	-$170,000.00	$0.02	0.77
Alta Equipment Group	$1.82 billion	0.08	-$62.10 million	($2.51)	-1.88

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

Summary

Omnitek Engineering beats Alta Equipment Group on 8 of the 15 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

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.