Axalta Coating Systems (NYSE:AXTA) and ArcelorMittal (NYSE:MT) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Volatility & Risk
Axalta Coating Systems has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.
Profitability
This table compares Axalta Coating Systems and ArcelorMittal's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Axalta Coating Systems | 2.49% | 20.51% | 4.11% |
ArcelorMittal | -7.00% | -3.57% | -1.63% |
Valuation & Earnings
This table compares Axalta Coating Systems and ArcelorMittal's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Axalta Coating Systems | $4.48 billion | 1.49 | $249 million | $1.80 | 15.90 |
ArcelorMittal | $70.62 billion | 0.35 | $-2,454,000,000.00 | $0.30 | 81.50 |
Axalta Coating Systems has higher earnings, but lower revenue than ArcelorMittal. Axalta Coating Systems is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.6% of Axalta Coating Systems shares are owned by institutional investors. Comparatively, 4.8% of ArcelorMittal shares are owned by institutional investors. 0.5% of Axalta Coating Systems shares are owned by insiders. Comparatively, 0.1% of ArcelorMittal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Axalta Coating Systems and ArcelorMittal, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Axalta Coating Systems | 0 | 3 | 12 | 1 | 2.88 |
ArcelorMittal | 0 | 1 | 11 | 0 | 2.92 |
Axalta Coating Systems presently has a consensus target price of $27.8182, suggesting a potential downside of 2.80%. ArcelorMittal has a consensus target price of $21.50, suggesting a potential downside of 12.07%. Given Axalta Coating Systems' higher possible upside, research analysts clearly believe Axalta Coating Systems is more favorable than ArcelorMittal.
Summary
Axalta Coating Systems beats ArcelorMittal on 12 of the 15 factors compared between the two stocks.