Global Brass and Copper (NYSE: BRSS) and Arconic (NYSE:ARNC) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Risk and Volatility
Global Brass and Copper has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Arconic has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
95.6% of Global Brass and Copper shares are held by institutional investors. Comparatively, 80.5% of Arconic shares are held by institutional investors. 3.2% of Global Brass and Copper shares are held by company insiders. Comparatively, 0.1% of Arconic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Global Brass and Copper pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Global Brass and Copper pays out 8.6% of its earnings in the form of a dividend. Arconic pays out 19.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of current ratings and recommmendations for Global Brass and Copper and Arconic, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Brass and Copper||0||0||0||0||N/A|
Arconic has a consensus target price of $29.78, suggesting a potential upside of 32.11%. Given Arconic’s higher possible upside, analysts plainly believe Arconic is more favorable than Global Brass and Copper.
Earnings and Valuation
This table compares Global Brass and Copper and Arconic’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Brass and Copper||$1.56 billion||0.46||$50.90 million||$2.78||11.62|
|Arconic||$12.96 billion||0.84||-$74.00 million||$1.22||18.48|
Global Brass and Copper has higher earnings, but lower revenue than Arconic. Global Brass and Copper is trading at a lower price-to-earnings ratio than Arconic, indicating that it is currently the more affordable of the two stocks.
This table compares Global Brass and Copper and Arconic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Brass and Copper||3.26%||46.79%||9.61%|
Global Brass and Copper beats Arconic on 8 of the 15 factors compared between the two stocks.
About Global Brass and Copper
Global Brass and Copper Holdings, Inc. converts, fabricates, processes, and distributes specialized non-ferrous products in the United States, the Asia Pacific, and Mexico. The company operates in three segments: Olin Brass, Chase Brass, and A.J. Oster. The Olin Brass segment manufactures, fabricates, and converts specialized copper and brass sheets, strips, foils, tubes, and fabricated products; and rerolls and forms other alloys, such as stainless steel, carbon steel, and aluminum. Its products are used in the building and housing, automotive, electronics/electrical components, munitions, and coinage markets. The Chase Brass segment manufactures and supplies brass rods in round, hexagonal, and other shapes for use in the building and housing, transportation, electronics/electrical components, and industrial machinery and equipment markets. The A.J. Oster segment processes and distributes primarily copper, brass, and aluminum sheets, strips, and coated products for use in the building and housing, automotive, and electronics/electrical components markets. The company sells its products under the Olin Brass, Chase Brass, A.J. Oster, Green Dot, and Eco Brass brands through its direct mill sales, distribution network, and third-party distributors. Global Brass and Copper Holdings, Inc. was founded in 2007 and is headquartered in Schaumburg, Illinois.
Arconic Inc. engineers, manufactures, and sells lightweight metals of aluminum, titanium, and nickel worldwide. It operates through three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions. The Engineered Products and Solutions produces and sells fastening systems and seamless rolled rings; investment castings, including airfoils and forged jet engine components; and extruded, machined, and formed aircraft parts, as well as various forged, extruded, and machined metal products. This segment serves commercial and defense aerospace, commercial transportation, and power generation end markets. The Global Rolled Products segment produces and sells aluminum sheets and plates; and aseptic foils. This segment serves commercial and defense aerospace, commercial transportation, and power generation end markets. The Transportation and Construction Solutions segment produces and sells integrated aluminum structural systems, architectural extrusions, and forged aluminum commercial vehicle wheels, as well as aluminum products for the industrial products end market. This segment serves nonresidential building and construction, and commercial transportation end markets. The company sells its products directly to customers and through distributors. Arconic Inc. was founded in 2016 and is based in New York, New York.
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