Comparing Ralliant (NYSE:RAL) & Vontier (NYSE:VNT)

Ralliant (NYSE:RAL) and Vontier (NYSE:VNT) are both mid-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ralliant	-52.10%	20.40%	8.62%
Vontier	11.27%	39.53%	11.74%

Analyst Ratings

This is a summary of current ratings and recommmendations for Ralliant and Vontier, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralliant	0	5	7	0	2.58
Vontier	1	3	4	0	2.38

Ralliant currently has a consensus target price of $78.40, suggesting a potential upside of 10.05%. Vontier has a consensus target price of $42.86, suggesting a potential downside of 2.09%. Given Ralliant’s stronger consensus rating and higher probable upside, research analysts plainly believe Ralliant is more favorable than Vontier.

Earnings & Valuation

This table compares Ralliant and Vontier”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ralliant	$2.28 billion	3.46	-$1.22 billion	($10.43)	-6.83
Vontier	$3.08 billion	1.89	$406.10 million	$2.44	17.94

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

Volatility and Risk

Ralliant has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

95.8% of Vontier shares are owned by institutional investors. 0.4% of Ralliant shares are owned by insiders. Comparatively, 1.1% of Vontier shares are owned by 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.

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Ralliant pays out -1.9% of its earnings in the form of a dividend. Vontier pays out 4.1% 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. Ralliant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Vontier beats Ralliant on 9 of the 16 factors compared between the two stocks.

About Ralliant

Ralliant Corporation is an industrial technology company that develops precision instrumentation and engineered products for customers in sectors such as aerospace and defense, electronics, semiconductor manufacturing, energy, and industrial markets. Its offerings include electronic test and measurement instruments, automated test systems, programmable power supplies, and monitoring and protection technologies for electrical equipment. The company’s portfolio includes established brands such as Tektronix, Keithley, EA Elektro-Automatik, and Qualitrol.

About Vontier

Vontier Corporation (NYSE: VNT) is a global technology company serving the mobility, convenience retail and commercial transportation industries. Its products and services help businesses manage fueling and energy infrastructure, vehicle maintenance, payments and fleet operations. The company’s offerings include fuel dispensers and payment systems, fuel-management and tank-monitoring technology, fleet telematics, vehicle diagnostic equipment and tools, and software for electric-vehicle charging.