Arconic (NASDAQ: ARNC) and Aluminum Corp. of China Limited (NYSE:ACH) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Arconic and Aluminum Corp. of China Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Arconic $12.56 billion 0.85 $1.35 billion N/A N/A
Aluminum Corp. of China Limited $24.42 billion 0.46 $1.97 billion $0.03 572.33

Aluminum Corp. of China Limited has higher revenue and earnings than Arconic.

Profitability

This table compares Arconic and Aluminum Corp. of China Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arconic 6.50% 14.01% 4.33%
Aluminum Corp. of China Limited 0.96% 1.50% 0.97%

Analyst Recommendations

This is a summary of recent ratings and target prices for Arconic and Aluminum Corp. of China Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 1 4 4 0 2.33
Aluminum Corp. of China Limited 0 0 1 0 3.00

Arconic presently has a consensus price target of $26.25, indicating a potential upside of 8.11%. Given Arconic’s higher possible upside, analysts clearly believe Arconic is more favorable than Aluminum Corp. of China Limited.

Insider & Institutional Ownership

0.4% of Aluminum Corp. of China Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Arconic beats Aluminum Corp. of China Limited on 6 of the 10 factors compared between the two stocks.

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.

Aluminum Corp. of China Limited Company Profile

Aluminum Corporation of China Limited (Chalco) is an aluminum producer with operations in bauxite and coal mining, alumina refining and primary aluminum smelting. The Company operates through alumina segment, including the mining and purchasing of bauxite and other raw materials, and production and sale of alumina, as well as alumina-related products; primary aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electricity power, the production and sale of primary aluminum and aluminum-related products; trading segment is engaged in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels; energy segment includes coal mining and power generation, including conventional coal-fire power generation and renewable energy generation, such as wind power and photovoltaic power, and corporate and other operating segment includes corporate and other aluminum-related research, development, and other activities.

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