Head-To-Head Review: Littelfuse (NASDAQ:LFUS) vs. Allient (NASDAQ:ALNT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Littelfuse	-3.00%	10.53%	6.65%
Allient	3.50%	11.49%	5.52%

Dividends

Littelfuse pays an annual dividend of $3.00 per share and has a dividend yield of 0.8%. Allient pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Littelfuse pays out -103.4% of its earnings in the form of a dividend. Allient pays out 10.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Littelfuse has raised its dividend for 15 consecutive years. Littelfuse is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Littelfuse and Allient, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Littelfuse	1	0	2	2	3.00
Allient	0	4	2	0	2.33

Littelfuse currently has a consensus price target of $364.00, suggesting a potential upside of 0.42%. Allient has a consensus price target of $57.50, suggesting a potential downside of 14.35%. Given Littelfuse’s stronger consensus rating and higher probable upside, equities analysts plainly believe Littelfuse is more favorable than Allient.

Insider and Institutional Ownership

96.1% of Littelfuse shares are held by institutional investors. Comparatively, 61.6% of Allient shares are held by institutional investors. 2.5% of Littelfuse shares are held by insiders. Comparatively, 15.6% of Allient shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Littelfuse has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Earnings & Valuation

This table compares Littelfuse and Allient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Littelfuse	$2.39 billion	3.81	-$71.70 million	($2.90)	-124.99
Allient	$529.97 million	2.15	$13.17 million	$1.12	59.94

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

Summary

Littelfuse beats Allient on 10 of the 17 factors compared between the two stocks.

About Littelfuse

Littelfuse, Inc. designs, manufactures, and sells electronic components, modules, and subassemblies in the Americas, Asia-Pacific, and Europe. The company operates through Electronic, Transportation, and Industrial segments. The Electronics segment offers fuses and fuse accessories, positive temperature coefficient resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing products, and gas discharge tubes; and discrete transient voltage suppressor (TVS) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors and diodes, and insulated gate bipolar transistors. This segment serves industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets. The Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors; fuses, switches, relays, circuit breakers, and power distribution modules; and sensor products. This segment serves heavy-duty truck, construction, agriculture, material handling, and marine. The Industrial segment offers industrial fuses, protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, arc fault detection devices, and temperature sensors for use in renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining, and factory automation. It sells its products through distributors, direct sales force, and manufacturers' representatives. Littelfuse, Inc. was founded in 1927 and is headquartered in Chicago, Illinois.

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.