AA vs. ATKR, GTLS, FLS, ESAB, BERY, TKR, MLI, ADT, SON, and ZWS
Should you be buying Alcoa stock or one of its competitors? The main competitors of Alcoa include Atkore (ATKR), Chart Industries (GTLS), Flowserve (FLS), ESAB (ESAB), Berry Global Group (BERY), Timken (TKR), Mueller Industries (MLI), ADT (ADT), Sonoco Products (SON), and Zurn Elkay Water Solutions (ZWS). These companies are all part of the "industrial products" sector.
Atkore (NYSE:ATKR) and Alcoa (NYSE:AA) are both mid-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Atkore currently has a consensus target price of $191.00, indicating a potential upside of 6.67%. Alcoa has a consensus target price of $33.54, indicating a potential downside of 5.36%. Given Alcoa's stronger consensus rating and higher probable upside, equities analysts clearly believe Atkore is more favorable than Alcoa.
Atkore has higher earnings, but lower revenue than Alcoa. Alcoa is trading at a lower price-to-earnings ratio than Atkore, indicating that it is currently the more affordable of the two stocks.
In the previous week, Alcoa had 37 more articles in the media than Atkore. MarketBeat recorded 44 mentions for Alcoa and 7 mentions for Atkore. Alcoa's average media sentiment score of 1.14 beat Atkore's score of 0.50 indicating that Atkore is being referred to more favorably in the media.
Atkore has a net margin of 18.80% compared to Atkore's net margin of -6.41%. Alcoa's return on equity of 46.79% beat Atkore's return on equity.
Alcoa received 667 more outperform votes than Atkore when rated by MarketBeat users. However, 67.05% of users gave Atkore an outperform vote while only 67.04% of users gave Alcoa an outperform vote.
Atkore has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Alcoa has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500.
Atkore pays an annual dividend of $1.28 per share and has a dividend yield of 0.7%. Alcoa pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Atkore pays out 7.7% of its earnings in the form of a dividend. Alcoa pays out -10.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alcoa is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Atkore beats Alcoa on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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