Comparing Amada (OTCMKTS:AMDLY) & Atmus Filtration Technologies (NYSE:ATMU)

Atmus Filtration Technologies (NYSE:ATMU) and Amada (OTCMKTS:AMDLY) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Dividends

Atmus Filtration Technologies pays an annual dividend of $0.22 per share and has a dividend yield of 0.4%. Amada pays an annual dividend of $1.08 per share and has a dividend yield of 1.4%. Atmus Filtration Technologies pays out 8.4% of its earnings in the form of a dividend. Amada pays out 39.4% 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.

Insider & Institutional Ownership

32.7% of Atmus Filtration Technologies shares are held by institutional investors. 0.4% of Atmus Filtration Technologies shares are held by 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 Atmus Filtration Technologies and Amada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atmus Filtration Technologies	11.32%	59.85%	14.66%
Amada	7.24%	6.11%	4.33%

Analyst Recommendations

This is a summary of current recommendations and price targets for Atmus Filtration Technologies and Amada, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmus Filtration Technologies	0	3	3	0	2.50
Amada	0	0	0	0	0.00

Atmus Filtration Technologies presently has a consensus price target of $62.00, suggesting a potential upside of 24.65%. Given Atmus Filtration Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Atmus Filtration Technologies is more favorable than Amada.

Earnings & Valuation

This table compares Atmus Filtration Technologies and Amada”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmus Filtration Technologies	$1.90 billion	2.14	$207.40 million	$2.61	19.06
Amada	$2.91 billion	2.04	$201.66 million	$2.74	27.25

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

Volatility & Risk

Atmus Filtration Technologies has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Amada has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Summary

Atmus Filtration Technologies beats Amada on 12 of the 16 factors compared between the two stocks.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.

About Amada

Amada Co., Ltd., together with its subsidiaries, manufactures, sells, leases, repairs, maintains, checks, and inspects metalworking machinery, software, and peripheral equipment in Japan, North America, Europe, Asia, and internationally. It offers sheet metal fabrication machines, including laser machines, punch and laser combination machines, turret punch presses, press brakes, bending robots, and welders, as well as software solutions; general fabrication machines, such as shearing and deburring machines, corner shear, iron worker, AMS SPACE series, horizontal benders, tapping and fastener insertion machines, and environment related products; cutting fluids, lubricants, and other consumables; and a range of tools for bending and punching. The company also provides metal cutting machines, such as hyper saw, pulse cutting band saw, automatic and semi-automatic general-purpose band saw, vertical band saw, circular saw, and other machines; structural steel machines; grinding machines; and band saw blades and circular saw blades that are used for metal cutting machines. In addition, it offers precision welding machines, including laser welders and markers, resistance welders, and systems for use in automobile parts, electronic components, and medical instruments. Further, the company provides consumables, and tooling equipment. Additionally, it offers stamping presses and stamping press equipment, and spring machines. The company was formerly known as Amada Holdings Co., Ltd. Amada Co., Ltd. was founded in 1946 and is headquartered in Isehara, Japan.