ALSTOM/ADR (OTCMKTS:ALSMY) and AMETEK (NYSE:AME) are both large-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares ALSTOM/ADR and AMETEK’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ALSTOM/ADR $9.12 billion 1.21 $519.21 million $0.22 22.36
AMETEK $5.16 billion 3.93 $861.30 million $4.19 21.11

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

Profitability

This table compares ALSTOM/ADR and AMETEK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ALSTOM/ADR N/A N/A N/A
AMETEK 18.48% 18.77% 9.68%

Analyst Ratings

This is a breakdown of current ratings and target prices for ALSTOM/ADR and AMETEK, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ALSTOM/ADR 0 5 2 0 2.29
AMETEK 0 3 10 0 2.77

AMETEK has a consensus price target of $100.07, suggesting a potential upside of 13.11%. Given AMETEK’s stronger consensus rating and higher possible upside, analysts clearly believe AMETEK is more favorable than ALSTOM/ADR.

Insider & Institutional Ownership

0.1% of ALSTOM/ADR shares are owned by institutional investors. Comparatively, 85.5% of AMETEK shares are owned by institutional investors. 0.7% of AMETEK shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

ALSTOM/ADR pays an annual dividend of $0.47 per share and has a dividend yield of 9.6%. AMETEK pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. ALSTOM/ADR pays out 213.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AMETEK pays out 17.2% of its earnings in the form of a dividend. AMETEK has increased its dividend for 1 consecutive years.

Volatility and Risk

ALSTOM/ADR has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, AMETEK has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Summary

AMETEK beats ALSTOM/ADR on 14 of the 17 factors compared between the two stocks.

About ALSTOM/ADR

Alstom SA develops and markets systems, equipment, and services for the transport sector in Europe, the Americas, Asia and Pacific, the Middle-East, and Africa. The company offers metros, tramways, tram-trains, suburban trains, regional trains, high-speed trains, and passengers and freight locomotives; and signaling products, such as rail control systems, security and control, trackside, and interlocking products. It is also involved in the design and installation solutions for track laying; the electrification of and power supply to lines; and supply and installation electromechanical equipment. In addition, the company provides urban and main-line rail systems to manage trains, signaling, infrastructure, and services; and maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors, traction systems, switchgears, auxiliary converters, traction transformers, feeding systems, and dampers. Alstom SA has a strategic partnership with Cosmotech to develop a new application to improve the efficiency of a rail system. Alstom SA was incorporated in 1992 and is headquartered in Saint-Ouen, France.

About AMETEK

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices worldwide. The company's Electronic Instruments segment offers advanced instruments for the process, aerospace, power, and industrial markets; process control instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets. This segment also provides power quality monitoring and metering, uninterruptible power systems, programmable power equipment, electromagnetic compatibility test equipment, sensors for gas turbines, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition units for the aerospace industry. Its Electromechanical Group segment offers engineered electrical connectors and electronics packaging used in aerospace and defense, medical, and industrial applications; advanced precision motion control products for use in a range of automation applications across the medical, semiconductor, aerospace, defense, and food and beverage industries; high-purity powdered metals, strip and foil, specialty clad metals, and metal matrix composites; blowers and heat exchangers for aerospace and defense industries; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and education communication solutions for hospitals, health systems, and educational facilities. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.

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