A-Mark Precious Metals (NASDAQ: AMRK) and Allegheny Technologies (NYSE:ATI) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility and Risk

A-Mark Precious Metals has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Allegheny Technologies has a beta of 2.51, meaning that its share price is 151% more volatile than the S&P 500.

Institutional and Insider Ownership

19.9% of A-Mark Precious Metals shares are held by institutional investors. 38.8% of A-Mark Precious Metals shares are held by insiders. Comparatively, 1.1% of Allegheny Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Allegheny Technologies does not pay a dividend. A-Mark Precious Metals pays out 32.3% of its earnings in the form of a dividend.

Profitability

This table compares A-Mark Precious Metals and Allegheny Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.10% 9.95% 1.40%
Allegheny Technologies -14.89% 0.08% 0.02%

Analyst Ratings

This is a summary of current ratings for A-Mark Precious Metals and Allegheny Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 1 1 3.00
Allegheny Technologies 0 5 3 0 2.38

A-Mark Precious Metals currently has a consensus price target of $21.65, indicating a potential upside of 34.06%. Allegheny Technologies has a consensus price target of $20.57, indicating a potential downside of 16.44%. Given A-Mark Precious Metals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe A-Mark Precious Metals is more favorable than Allegheny Technologies.

Valuation & Earnings

This table compares A-Mark Precious Metals and Allegheny Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $6.99 billion 0.02 $10.39 million $0.99 16.31
Allegheny Technologies $3.31 billion 0.81 $295.80 million ($4.61) -5.34

Allegheny Technologies has higher revenue, but lower earnings than A-Mark Precious Metals. Allegheny Technologies is trading at a lower price-to-earnings ratio than A-Mark Precious Metals, indicating that it is currently the more affordable of the two stocks.

Summary

A-Mark Precious Metals beats Allegheny Technologies on 11 of the 16 factors compared between the two stocks.

A-Mark Precious Metals Company Profile

A-Mark Precious Metals, Inc. is a precious metal trading company. The Company is a wholesaler of gold, silver, platinum and palladium bullion and related products, including bars, wafers, grain and coins. It distributes gold and silver coins and bars from sovereign and private mints; provides financing for the purchase of bullion and numismatics; offers storage for bullion, and offers complementary products, such as consignment, customized finance and liquidity programs, such as repurchase (Repo) accounts, and trade quotes in a variety of foreign currencies. It operates through various business units for accounting purposes, including Industrial, Coin and Bar, Trading, Finance, Collateral Finance Corporation, Transcontinental Depository Services and Logistics. It is an authorized distributor of gold and silver coins for sovereign mints and various private mints. The sovereign mints include the United States Mint, the Australian (Perth) Mint and the Austrian Mint, among others.

Allegheny Technologies Company Profile

Allegheny Technologies Incorporated is a manufacturer of specialty materials and complex components. The Company operates through two business segments: High Performance Materials & Components (HPMC), and Flat Rolled Products (FRP). The HPMC segment produces, converts and distributes a range of materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, zirconium and related alloys, including hafnium and niobium, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, castings, components and machined parts. The FRP segment produces, converts and distributes stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, in a range of product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products.

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