Allient (NASDAQ:ALNT) versus Fabrinet (NYSE:FN) Head-To-Head Review

Fabrinet (NYSE:FN) and Allient (NASDAQ:ALNT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Insider & Institutional Ownership

97.4% of Fabrinet shares are held by institutional investors. Comparatively, 61.6% of Allient shares are held by institutional investors. 0.4% of Fabrinet shares are held by insiders. Comparatively, 15.6% of Allient shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fabrinet	10.00%	17.99%	13.26%
Allient	1.90%	8.45%	3.86%

Risk & Volatility

Fabrinet has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Allient has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fabrinet and Allient, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fabrinet	0	4	3	0	2.43
Allient	0	2	2	0	2.50

Fabrinet presently has a consensus target price of $261.33, indicating a potential downside of 15.51%. Allient has a consensus target price of $31.00, indicating a potential downside of 21.52%. Given Fabrinet’s higher probable upside, equities analysts plainly believe Fabrinet is more favorable than Allient.

Earnings & Valuation

This table compares Fabrinet and Allient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fabrinet	$2.88 billion	3.84	$296.18 million	$8.98	34.44
Allient	$529.97 million	1.26	$13.17 million	$0.59	66.95

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

Summary

Fabrinet beats Allient on 10 of the 14 factors compared between the two stocks.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in Grand Cayman, the Cayman Islands.

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.