Arconic (NYSE: ARNC) is one of 43 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Arconic to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.

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 -6.80% 22.01% 3.20%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -11.16
Arconic Competitors $8.89 billion $722.08 million 190.32

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.

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. 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 35.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Arconic and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 5 0 2.71
Arconic Competitors 481 2188 2399 84 2.40

Arconic currently has a consensus price target of $28.57, suggesting a potential upside of 19.60%. As a group, “Aerospace & Defense” companies have a potential upside of 16.10%. Given Arconic’s stronger consensus rating and higher probable upside, equities analysts plainly believe Arconic is more favorable than its rivals.

Volatility & Risk

Arconic has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Arconic’s rivals have a beta of 1.10, meaning that their average stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

73.2% of Arconic shares are owned by institutional investors. Comparatively, 71.9% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by insiders. Comparatively, 5.9% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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.

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