Head to Head Survey: Rio Alto Mining (RIOM) versus Allegheny Technologies (ATI)

Rio Alto Mining (NASDAQ: RIOM) and Allegheny Technologies (NYSE:ATI) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

96.6% of Allegheny Technologies shares are held by institutional investors. 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 is poised for long-term growth.

Valuation & Earnings

This table compares Rio Alto Mining and Allegheny Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rio Alto Mining N/A N/A N/A N/A N/A
Allegheny Technologies $3.31 billion 0.83 $295.80 million ($4.61) -5.46

Allegheny Technologies has higher revenue and earnings than Rio Alto Mining.

Profitability

This table compares Rio Alto Mining and Allegheny Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rio Alto Mining N/A N/A N/A
Allegheny Technologies -14.89% 0.08% 0.02%

Analyst Recommendations

This is a summary of current ratings and price targets for Rio Alto Mining and Allegheny Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rio Alto Mining 0 0 0 0 N/A
Allegheny Technologies 0 4 4 0 2.50

Allegheny Technologies has a consensus target price of $20.65, suggesting a potential downside of 17.93%. Given Allegheny Technologies’ higher probable upside, analysts clearly believe Allegheny Technologies is more favorable than Rio Alto Mining.

Summary

Allegheny Technologies beats Rio Alto Mining on 7 of the 8 factors compared between the two stocks.

Rio Alto Mining Company Profile

Rio Alto Mining Limited is a Canada-based resource exploration company. The Company is engaged in the business of acquiring, exploring, developing and operating mineral resource properties in Peru. The Company is also engaged in the business of acquiring, exploring, and developing gold resources and advanced stage exploration projects in Peru and Latin America. The Company owns and operates the La Arena Mine and the Shahuindo Gold Projects in northern Peru. The Company is focused on the development of the 21,000 hectares La Arena gold / copper project, located in north central Peru. The La Arena Project consists of 20,673 hectares in 44 concessions located 480 kilometers north-northwest of Lima, the capital of Peru, and approximately 18 kilometers from Huamachuco.

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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