Critical Review: Vontier (NYSE:VNT) versus ATRenew (NYSE:RERE)

Vontier (NYSE:VNT) and ATRenew (NYSE:RERE) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

Vontier has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Insider & Institutional Ownership

95.8% of Vontier shares are owned by institutional investors. Comparatively, 19.3% of ATRenew shares are owned by institutional investors. 1.1% of Vontier shares are owned by company insiders. Comparatively, 10.7% of ATRenew shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Vontier and ATRenew”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vontier	$3.08 billion	1.30	$406.10 million	$2.83	10.01
ATRenew	$3.01 billion	0.32	$48.09 million	$0.25	17.46

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

Profitability

This table compares Vontier and ATRenew’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vontier	13.37%	37.88%	10.90%
ATRenew	1.90%	11.48%	7.98%

Dividends

Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. ATRenew pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. Vontier pays out 3.5% of its earnings in the form of a dividend. ATRenew pays out 40.0% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Vontier and ATRenew, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vontier	1	4	5	0	2.40
ATRenew	0	1	0	0	2.00

Vontier currently has a consensus price target of $42.38, suggesting a potential upside of 49.52%. Given Vontier’s stronger consensus rating and higher probable upside, research analysts plainly believe Vontier is more favorable than ATRenew.

Summary

Vontier beats ATRenew on 13 of the 16 factors compared between the two stocks.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.