Critical Comparison: Reelcause (OTCMKTS:RCIT) versus ATS (NYSE:ATS)

ATS (NYSE:ATS) and Reelcause (OTCMKTS:RCIT) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares ATS and Reelcause”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATS	$2.29 billion	1.27	$143.62 million	$1.46	20.41
Reelcause	N/A	N/A	N/A	N/A	N/A

ATS has higher revenue and earnings than Reelcause.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ATS and Reelcause, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATS	1	2	1	0	2.00
Reelcause	0	0	0	0	N/A

ATS presently has a consensus target price of $42.00, indicating a potential upside of 44.13%. Given ATS’s higher probable upside, research analysts clearly believe ATS is more favorable than Reelcause.

Volatility & Risk

ATS has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Reelcause has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares ATS and Reelcause’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATS	6.11%	14.63%	5.90%
Reelcause	N/A	N/A	N/A

Insider & Institutional Ownership

75.8% of ATS shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ATS beats Reelcause on 8 of the 8 factors compared between the two stocks.

About ATS

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. In addition, it offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services. Further, the company provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. Additionally, it offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. ATS Corporation serves life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

About Reelcause

Reelcause, Inc. does not have significant operations. The company intends to pursue the direct or indirect acquisition and development of real estate assets, and/or businesses related thereto. The company was formerly known as China Green Energy Industries, Inc. and changed its name to Reelcause, Inc. in December 2014. Reelcause, Inc. is based in Las Vegas, Nevada.