Arconic (NYSE: ARNC) is one of 41 public companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare Arconic to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Arconic pays out -11.2% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 36.1% of their earnings in the form of a dividend.

Volatility and Risk

Arconic has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Arconic’s rivals have a beta of 1.08, indicating that their average stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Arconic and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -11.77
Arconic Competitors $8.89 billion $721.62 million 213.05

Arconic has higher revenue, but lower earnings than its rivals. Arconic is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Arconic and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arconic -4.70% 9.71% 2.73%
Arconic Competitors -6.72% 22.87% 3.50%

Insider and Institutional Ownership

74.7% of Arconic shares are held by institutional investors. Comparatively, 73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.1% of Arconic shares are held by insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Arconic and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 4 0 2.67
Arconic Competitors 410 1973 2354 89 2.44

Arconic currently has a consensus price target of $29.17, indicating a potential upside of 15.28%. As a group, “Aerospace & Defense” companies have a potential upside of 12.69%. Given Arconic’s stronger consensus rating and higher probable upside, research analysts clearly believe Arconic is more favorable than its rivals.

Summary

Arconic rivals beat Arconic on 8 of the 15 factors compared.

Arconic Company Profile

Arconic Inc., formerly Alcoa Inc., is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging. The Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. The Engineered Products and Solutions segment develops and manufactures products for the aerospace (commercial and defense), commercial transportation and power generation end markets. The Transportation and Construction Solutions segment produces products that are used in the non-residential building and construction and commercial transportation end markets.

Receive News & Ratings for Arconic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arconic and related companies with MarketBeat.com's FREE daily email newsletter.