Allegheny Technologies (NYSE: ATI) and Precision Castparts Corp. (NYSE:PCP) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitabiliy, dividends and valuation.

Profitability

This table compares Allegheny Technologies and Precision Castparts Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegheny Technologies -16.10% -1.84% -0.57%
Precision Castparts Corp. N/A N/A N/A

Institutional & Insider Ownership

96.6% of Allegheny Technologies shares are owned by institutional investors. 1.1% of Allegheny Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Allegheny Technologies pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Precision Castparts Corp. does not pay a dividend. Allegheny Technologies pays out -1.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Allegheny Technologies and Precision Castparts Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allegheny Technologies $3.24 billion 0.54 $242.50 million ($4.88) -3.26
Precision Castparts Corp. N/A N/A N/A N/A N/A

Allegheny Technologies has higher revenue and earnings than Precision Castparts Corp..

Analyst Recommendations

This is a summary of recent recommendations for Allegheny Technologies and Precision Castparts Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegheny Technologies 1 3 3 0 2.29
Precision Castparts Corp. 0 0 0 0 N/A

Allegheny Technologies presently has a consensus target price of $19.74, indicating a potential upside of 23.94%. Given Allegheny Technologies’ higher probable upside, analysts clearly believe Allegheny Technologies is more favorable than Precision Castparts Corp..

Summary

Allegheny Technologies beats Precision Castparts Corp. on 7 of the 10 factors compared between the two stocks.

About Allegheny Technologies

Allegheny Technologies Incorporated is a manufacturer of specialty materials and complex components. The Company operates through two business segments: High Performance Materials & Components (HPMC), and Flat Rolled Products (FRP). The HPMC segment produces, converts and distributes a range of materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, zirconium and related alloys, including hafnium and niobium, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, castings, components and machined parts. The FRP segment produces, converts and distributes stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, in a range of product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products.

About Precision Castparts Corp.

Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.

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