As we explore the dynamic landscape of the industrial machinery sector, two notable players stand out: ATS Corporation and JBT Marel Corporation. Both companies are at the forefront of automation and food processing solutions, respectively, showcasing their innovative strategies and significant market overlaps. With their distinct offerings and robust growth potential, I aim to uncover which of these companies presents the most intriguing investment opportunity for you. Let’s dive deeper into their operations and potential for growth.
Table of contents
Company Overview
ATS Corporation Overview
ATS Corporation, headquartered in Cambridge, Canada, is a leader in automation solutions, providing a wide breadth of services including planning, designing, building, and servicing automated manufacturing and assembly systems. Established in 1978, ATS serves diverse industries such as life sciences, transportation, consumer products, and energy. The company is focused on enhancing operational efficiency through innovative automation technologies, including software and digital solutions that leverage real-time data for process optimization. With a market cap of approximately 2.5B and a workforce of 7,500 employees, ATS aims to drive sustainable production improvements across its sectors.
JBT Marel Corporation Overview
JBT Marel Corporation, based in Chicago, Illinois, specializes in technology solutions for the food and beverage industry, offering a comprehensive suite of processing and packaging services. Founded in 1994, the company emphasizes value-added processing techniques that cater to numerous markets, including poultry, meat, and dairy, as well as pharmaceuticals. With a market cap nearing 7.3B and a workforce of 11,700, JBT Marel is committed to delivering innovative solutions that enhance food safety and operational efficiency across the global supply chain.
Key similarities and differences
Both ATS Corporation and JBT Marel Corporation operate within the industrial machinery sector, focusing on automation and technology solutions for their respective markets. However, their primary differences lie in their target industries; ATS serves a broader range of sectors including life sciences and transportation, while JBT Marel is concentrated on the food and beverage market. This distinction shapes their business models and product offerings.
Income Statement Comparison
In this section, I present a comparative analysis of the latest income statements for ATS Corporation and JBT Marel Corporation, focusing on key financial metrics for the most recent fiscal year.
| Metric | ATS Corporation | JBT Marel Corporation |
|---|---|---|
| Market Cap | 2.50B | 7.30B |
| Revenue | 2.53B | 1.72B |
| EBITDA | 168M | 204M |
| EBIT | 15M | 115M |
| Net Income | -28M | 85M |
| EPS | -0.29 | 2.67 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ATS Corporation reported a decline in revenue to 2.53B CAD, down from 3.03B CAD in the previous year, leading to a net loss of 28M CAD. This trend indicates a significant decline in demand or operational challenges. Conversely, JBT Marel Corporation showcased a revenue increase to 1.72B USD, with a robust net income of 85M USD, emphasizing its strong market position. The contrast in performance reflects ATS’s difficulties, while JBTM’s margins remained stable, suggesting effective management and operational efficiency. Overall, JBTM appears to be the stronger investment choice in this comparison.
Financial Ratios Comparison
In this section, I provide a comparative overview of the financial performance of ATS Corporation and JBT Marel Corporation based on their most recent revenue and key financial ratios.
| Metric | ATS (2025) | JBTM (2024) |
|---|---|---|
| ROE | -1.64% | 5.53% |
| ROIC | 0.09% | 3.65% |
| P/E | -125.28 | 47.63 |
| P/B | 2.06 | 2.63 |
| Current Ratio | 1.69 | 3.48 |
| Quick Ratio | 1.41 | 3.04 |
| D/E | 0.997 | 0.811 |
| Debt-to-Assets | 0.368 | 0.367 |
| Interest Coverage | 0.09 | 6.10 |
| Asset Turnover | 0.55 | 0.50 |
| Fixed Asset Turnover | 5.66 | 7.34 |
| Payout Ratio | 0% | 15.34% |
| Dividend Yield | 0% | 0.32% |
Interpretation of Financial Ratios
When comparing the financial ratios, JBT Marel Corporation demonstrates stronger performance, particularly with a positive ROE and a manageable debt-to-equity ratio. ATS Corporation’s negative ROE and low interest coverage signal potential financial distress, raising concerns about its ability to cover interest obligations. Caution is warranted for investors considering ATS, while JBTM appears to be a more stable investment option.
Dividend and Shareholder Returns
ATS Corporation does not pay dividends, reflecting its negative net income and ongoing reinvestment strategy to support growth. Instead, the company focuses on share buybacks, indicating a commitment to enhancing shareholder value over time. Conversely, JBT Marel Corporation offers a modest dividend yield of 0.32% with a payout ratio of 15.34%, suggesting a balanced approach between returning cash to shareholders and funding growth initiatives. Overall, JBTM’s strategy appears to support long-term value creation, while ATS’s approach may yield future benefits if growth translates into profitability.
Strategic Positioning
In the industrial machinery sector, ATS Corporation (ATS) holds a market cap of approximately 2.5B, focusing on automation solutions across diverse industries. Its competitive pressure is moderate, with a beta of 1.313 indicating higher volatility. In contrast, JBT Marel Corporation (JBTM) commands a larger market cap of about 7.3B, specializing in food processing technology. Both companies face technological disruptions, but JBTM seems better positioned to leverage emerging trends in food automation.
Stock Comparison
In this section, I will provide an analysis of the stock price movements and trading dynamics for ATS Corporation (ATS) and JBT Marel Corporation (JBTM) over the past year, highlighting key trends and notable fluctuations in their stock prices.
Trend Analysis
ATS Corporation (ATS) Over the past year, ATS has experienced a significant price change of -37.73%, indicating a bearish trend. The stock has seen notable highs of 43.82 and lows of 23.5, with the overall trend showing deceleration. The standard deviation of 4.45 suggests moderate volatility in its price movements. Recently, from September 14 to November 30, the stock price changed by -6.39%, reflecting a continued bearish sentiment with a slight downward trend slope of -0.15.
JBT Marel Corporation (JBTM) In contrast, JBTM has demonstrated a robust performance, with a price change of +52.67% over the past year, characterizing a bullish trend. The stock reached a high of 147.7 and a low of 87.85, indicating a healthy price range. The trend is decelerating, as evidenced by the recent price change of +2.24% from September 14 to November 30, along with a trend slope of 0.02. The standard deviation of 17.43 points to higher volatility compared to ATS.
In summary, while ATS is facing challenges with a pronounced bearish trend, JBTM shows strong growth potential despite recent deceleration in its upward momentum. Investors should consider these trends carefully when evaluating their investment strategies.
Analyst Opinions
Recent analyst recommendations for both ATS Corporation (ATS) and JBT Marel Corporation (JBTM) indicate a cautious stance, with both receiving a “C” rating. Analysts highlight concerns regarding low return on equity and assets, which are critical for long-term growth. The discounted cash flow analysis is slightly more favorable, but overall sentiment leans towards holding rather than buying. Therefore, the consensus for both companies in 2025 is to hold, reflecting a wait-and-see approach amidst current market uncertainties.
Stock Grades
Recent evaluations from reputable grading companies provide insight into the performance outlook for key stocks. Here’s a look at the latest stock ratings for ATS Corporation and JBT Marel Corporation.
ATS Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2024-08-13 |
| Goldman Sachs | Maintain | Sell | 2024-08-13 |
| JP Morgan | Maintain | Neutral | 2024-05-24 |
JBT Marel Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| William Blair | Upgrade | Outperform | 2025-08-06 |
In summary, ATS Corporation maintains a neutral to sell outlook from leading analysts, indicating caution among investors. In contrast, JBT Marel Corporation has received an upgrade, suggesting a more favorable view and potential for growth.
Target Prices
The consensus target prices for the selected companies indicate strong expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ATS Corporation (ATS) | 34 | 34 | 34 |
| JBT Marel Corporation (JBTM) | 169 | 169 | 169 |
For ATS Corporation, the consensus target of 34 reflects a significant upside from its current price of 25.51. Similarly, JBT Marel Corporation’s target consensus of 169 suggests a strong growth potential compared to its current price of 140.53.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ATS Corporation and JBT Marel Corporation based on the most recent data.
| Criterion | ATS Corporation | JBT Marel Corporation |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low | Moderate |
| Innovation | Moderate | High |
| Global presence | Moderate | High |
| Market Share | Low | High |
| Debt level | Moderate | Low |
Key takeaways indicate that while JBT Marel Corporation shows stronger profitability and global presence, ATS Corporation has room for improvement in these areas. Investors should weigh these factors carefully when considering investments.
Risk Analysis
In this section, I will outline the key risks associated with ATS Corporation and JBT Marel Corporation to help investors make informed decisions.
| Metric | ATS Corporation | JBT Marel Corporation |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | Moderate |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks. ATS has a high operational risk due to its reliance on specific industries, while JBT is exposed to regulatory and geopolitical challenges, especially given its global operations. Recent supply chain disruptions and regulatory changes in key markets add to these concerns.
Which one to choose?
When comparing ATS Corporation (ATS) and JBT Marel Corporation (JBTM), a few key metrics stand out. ATS is currently facing challenges, with a negative net profit margin of -1.1% and a bearish stock trend, having experienced a 37.73% decline. Its Price to Earnings (P/E) ratio is notably high at -125, indicating potential overvaluation. In contrast, JBTM shows a bullish trend with a 52.67% price increase, a positive net profit margin of 35%, and a more favorable P/E ratio of 5.46. Analysts rate both companies with a “C,” but JBTM’s stronger fundamentals and market momentum may appeal more to growth-focused investors.
Recommendation: Investors prioritizing growth may favor JBTM due to its solid performance and upward trend, while those leaning towards stability might consider ATS, albeit with caution due to its current challenges.
Specific risks include market volatility and competition, which could impact both companies’ performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of ATS Corporation and JBT Marel Corporation to enhance your investment decisions:
