Global Brass and Copper (NYSE: BRSS) and Allegheny Technologies (NYSE:ATI) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Insider & Institutional Ownership
95.2% of Global Brass and Copper shares are owned by institutional investors. 3.2% of Global Brass and Copper shares are owned by company insiders. Comparatively, 1.1% of Allegheny Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Global Brass and Copper and Allegheny Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Brass and Copper||3.61%||47.75%||9.16%|
This is a summary of recent ratings and price targets for Global Brass and Copper and Allegheny Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Brass and Copper||0||1||0||0||2.00|
Allegheny Technologies has a consensus price target of $20.57, indicating a potential downside of 9.34%. Given Allegheny Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Allegheny Technologies is more favorable than Global Brass and Copper.
Global Brass and Copper 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 pays out 10.0% of its earnings in the form of a dividend.
Volatility and Risk
Global Brass and Copper has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Allegheny Technologies has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500.
Valuation and Earnings
This table compares Global Brass and Copper and Allegheny Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Brass and Copper||$1.34 billion||0.56||$32.20 million||$2.41||14.32|
|Allegheny Technologies||$3.13 billion||0.79||-$640.90 million||($0.82)||-27.67|
Global Brass and Copper has higher earnings, but lower revenue than Allegheny Technologies. Allegheny Technologies is trading at a lower price-to-earnings ratio than Global Brass and Copper, indicating that it is currently the more affordable of the two stocks.
Global Brass and Copper 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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