Global Brass and Copper Holdings (NYSE: BRSS) and Allegheny Technologies (NYSE:ATI) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Dividends

Global Brass and Copper Holdings pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Allegheny Technologies does not pay a dividend. Global Brass and Copper Holdings pays out 11.8% of its earnings in the form of a dividend.

Volatility and Risk

Global Brass and Copper Holdings has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Allegheny Technologies has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Global Brass and Copper Holdings and Allegheny Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Brass and Copper Holdings 0 1 0 0 2.00
Allegheny Technologies 0 5 3 0 2.38

Allegheny Technologies has a consensus target price of $20.57, suggesting a potential downside of 18.30%. Given Allegheny Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Allegheny Technologies is more favorable than Global Brass and Copper Holdings.

Institutional and Insider Ownership

95.0% of Global Brass and Copper Holdings shares are held by institutional investors. 3.2% of Global Brass and Copper Holdings shares are held by company insiders. Comparatively, 1.1% of Allegheny Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Global Brass and Copper Holdings and Allegheny Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Global Brass and Copper Holdings $1.44 billion 0.53 $113.00 million $2.03 17.24
Allegheny Technologies $3.31 billion 0.83 $295.80 million ($0.78) -32.28

Allegheny Technologies has higher revenue and earnings than Global Brass and Copper Holdings. Allegheny Technologies is trading at a lower price-to-earnings ratio than Global Brass and Copper Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global Brass and Copper Holdings and Allegheny Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Brass and Copper Holdings 3.10% 55.01% 9.62%
Allegheny Technologies -2.45% 1.09% 0.31%

Summary

Allegheny Technologies beats Global Brass and Copper Holdings on 9 of the 16 factors compared between the two stocks.

Global Brass and Copper Holdings Company Profile

Global Brass and Copper Holdings, Inc. is a converter, fabricator, processor and distributor of specialized non-ferrous products, including a range of sheet, strip, foil, rod, tube and fabricated metal component products. The Company operates through three segments: Olin Brass, Chase Brass and A.J. Oster. Its Olin Brass segment is engaged in manufacturing, fabricating and converting specialized copper and brass sheet, strip, foil, tube and fabricated products. The Chase Brass segment is engaged in manufacturing brass rod, including round, hexagonal and other shapes. The A.J. Oster segment is engaged in processing and distributing copper and copper-alloy sheet, strip and foil, operating six service centers in the United States, Puerto Rico and Mexico. Its products are used in a range of applications across markets, including the building and housing, munitions, automotive, transportation, coinage, industrial machinery and equipment, and general consumer end markets.

Allegheny Technologies Company Profile

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.

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