Arconic (ARNC) vs. The Competition Critical Survey
Arconic (NYSE: ARNC) is one of 42 public companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Arconic to similar businesses based on the strength of its valuation, institutional ownership, risk, profitability, analyst recommendations, earnings and dividends.
Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Arconic pays out -15.1% 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 35.9% of their earnings in the form of a dividend.
This table compares Arconic and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Arconic||$12.39 billion||-$941.00 million||-16.12|
|Arconic Competitors||$8.89 billion||$721.62 million||202.57|
Arconic has higher revenue, but lower earnings than its peers. Arconic is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and recommmendations for Arconic and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arconic currently has a consensus price target of $29.17, suggesting a potential upside of 13.80%. As a group, “Aerospace & Defense” companies have a potential upside of 9.69%. Given Arconic’s stronger consensus rating and higher probable upside, equities analysts clearly believe Arconic is more favorable than its peers.
Volatility and Risk
Arconic has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Arconic’s peers have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.
This table compares Arconic and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
74.6% of Arconic shares are held by institutional investors. Comparatively, 72.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.1% of Arconic shares are held by insiders. Comparatively, 6.5% 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 stock will outperform the market over the long term.
Arconic peers beat Arconic on 8 of the 15 factors compared.
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.
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