Analyzing Allient (NASDAQ:ALNT) and CPS Technologies (NASDAQ:CPSH)

CPS Technologies (NASDAQ:CPSH) and Allient (NASDAQ:ALNT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares CPS Technologies and Allient”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$32.60 million	2.46	$420,000.00	N/A	N/A
Allient	$554.48 million	2.66	$22.03 million	$1.43	60.69

Allient has higher revenue and earnings than CPS Technologies.

Analyst Ratings

This is a breakdown of current recommendations for CPS Technologies and Allient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	1	1	1	0	2.00
Allient	0	2	4	0	2.67

CPS Technologies currently has a consensus target price of $6.00, indicating a potential upside of 35.14%. Allient has a consensus target price of $79.83, indicating a potential downside of 8.00%. Given CPS Technologies’ higher probable upside, research analysts plainly believe CPS Technologies is more favorable than Allient.

Insider and Institutional Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 61.6% of Allient shares are held by institutional investors. 13.2% of CPS Technologies shares are held by insiders. Comparatively, 15.0% of Allient shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

CPS Technologies has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	0.10%	0.16%	0.13%
Allient	4.25%	12.47%	6.37%

Summary

Allient beats CPS Technologies on 10 of the 12 factors compared between the two stocks.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

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.