Alcoa Corp. (NYSE: AA) and Noranda Aluminum Holding Corporation (NYSE:NOR) are both large-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Alcoa Corp. and Noranda Aluminum Holding Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcoa Corp. 0 5 11 1 2.76
Noranda Aluminum Holding Corporation 0 0 0 0 N/A

Alcoa Corp. presently has a consensus target price of $50.64, indicating a potential upside of 7.48%. Given Alcoa Corp.’s higher possible upside, analysts clearly believe Alcoa Corp. is more favorable than Noranda Aluminum Holding Corporation.

Profitability

This table compares Alcoa Corp. and Noranda Aluminum Holding Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcoa Corp. 2.61% 4.90% 2.32%
Noranda Aluminum Holding Corporation -23.47% N/A -20.48%

Valuation & Earnings

This table compares Alcoa Corp. and Noranda Aluminum Holding Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Alcoa Corp. $9.32 billion 0.94 -$400.00 million $1.53 30.80
Noranda Aluminum Holding Corporation N/A N/A N/A ($25.96) 0.00

Noranda Aluminum Holding Corporation has higher revenue, but lower earnings than Alcoa Corp.. Noranda Aluminum Holding Corporation is trading at a lower price-to-earnings ratio than Alcoa Corp., indicating that it is currently the more affordable of the two stocks.

Summary

Alcoa Corp. beats Noranda Aluminum Holding Corporation on 8 of the 8 factors compared between the two stocks.

Alcoa Corp. Company Profile

Alcoa Corporation, formerly Alcoa Upstream Corporation, is engaged in the production of bauxite, alumina and aluminum of various cast and rolled products. The Company is engaged in the production and management of aluminum and alumina combined through its participation in various aspects of the industry, such as technology, mining, refining, smelting, and recycling. The Company’s segments include Bauxite, Alumina, Aluminum, Cast Products, Energy and Rolled Products. The Company’s Bauxite segment represents its global portfolio of bauxite mining assets. The Company’s Alumina segment represents its refining system across the world, and processes bauxite into alumina and sells it directly to internal and external smelter customers across the world. The Company’s Aluminum segment represents its smelter system across the world. Its Energy segment represents its portfolio of energy assets, with power production capacity of approximately 1,685 megawatts.

Noranda Aluminum Holding Corporation Company Profile

Noranda Aluminum Holding Corporation is a producer of primary aluminum, alumina, bauxite and rolled aluminum coils. The Company produces aluminum products in a range of forms, such as billet, rod, sow and foundry. The Company operates through five segments: Bauxite, Alumina, Primary Aluminum, Flat-Rolled Products and Corporate. The Company has two businesses: Upstream Business and Downstream Business. Its Upstream Business consists of three segments: Primary Aluminum, Alumina and Bauxite. The Primary segment consists of a smelter near New Madrid, Missouri (New Madrid). The Alumina segment consists of an alumina refinery near Gramercy, Louisiana (Gramercy). The Bauxite segment consists of a bauxite mining operation (St. Ann). Its Downstream Business consists of its Flat-Rolled Products segment, which is an aluminum foil producer in North America, and consists of approximately four rolling mills at approximately three facilities.

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