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

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 1.3% and pay out 34.0% of their earnings in the form of a dividend.

Profitability

This table compares Arconic and its peers’ 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 -7.16% 22.89% 3.37%

Analyst Ratings

This is a summary of recent ratings for Arconic and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 4 0 2.67
Arconic Competitors 487 2203 2413 89 2.41

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 13.06%. Given Arconic’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Arconic is more favorable than its peers.

Insider and Institutional Ownership

74.7% of Arconic shares are owned by institutional investors. Comparatively, 75.8% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by company insiders. Comparatively, 6.8% of shares of all “Aerospace & Defense” companies are owned by company 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.

Earnings and Valuation

This table compares Arconic and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -15.91
Arconic Competitors $9.12 billion $743.12 million 222.59

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.

Risk & Volatility

Arconic has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Arconic’s peers have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Summary

Arconic peers beat Arconic on 9 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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