Century Aluminum (NASDAQ:CENX) and Altra Industrial Motion (NASDAQ:AIMC) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Volatility & Risk
Century Aluminum has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Altra Industrial Motion has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500.
Institutional and Insider Ownership
50.6% of Century Aluminum shares are owned by institutional investors. 1.2% of Century Aluminum shares are owned by company insiders. Comparatively, 1.2% of Altra Industrial Motion shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Century Aluminum and Altra Industrial Motion's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Century Aluminum | $1.84 billion | 0.36 | $-80,800,000.00 | ($1.35) | -5.46 |
| Altra Industrial Motion | $1.83 billion | 1.33 | $127.20 million | $2.86 | 13.23 |
Altra Industrial Motion has lower revenue, but higher earnings than Century Aluminum. Century Aluminum is trading at a lower price-to-earnings ratio than Altra Industrial Motion, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Century Aluminum and Altra Industrial Motion, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Century Aluminum | 0 | 2 | 0 | 0 | 2.00 |
| Altra Industrial Motion | 0 | 2 | 3 | 0 | 2.60 |
Century Aluminum presently has a consensus target price of $6.00, suggesting a potential downside of 18.70%. Altra Industrial Motion has a consensus target price of $35.80, suggesting a potential downside of 5.37%. Given Altra Industrial Motion's stronger consensus rating and higher possible upside, analysts plainly believe Altra Industrial Motion is more favorable than Century Aluminum.
Profitability
This table compares Century Aluminum and Altra Industrial Motion's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Century Aluminum | -3.49% | -9.50% | -4.18% |
| Altra Industrial Motion | -1.85% | 9.13% | 3.98% |
Summary
Altra Industrial Motion beats Century Aluminum on 10 of the 13 factors compared between the two stocks.
