Arconic (NYSE: ARNC) is one of 43 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its peers? We will compare Arconic to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.
Earnings & Valuation
This table compares Arconic and its peers top-line revenue, earnings per share and valuation.
Arconic has higher revenue, but lower earnings than its peers. Arconic is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent recommendations for Arconic and its peers, as reported by MarketBeat.
||Strong Buy Ratings
Arconic presently has a consensus target price of $28.57, suggesting a potential upside of 16.19%. As a group, “Aerospace & Defense” companies have a potential upside of 13.66%. Given Arconic’s stronger consensus rating and higher probable upside, equities analysts clearly believe Arconic is more favorable than its peers.
Volatility and Risk
Arconic has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Arconic’s peers have a beta of 1.06, meaning that their average stock price is 6% more volatile than the S&P 500.
This table compares Arconic and its peers’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider & Institutional Ownership
74.7% of Arconic shares are owned by institutional investors. Comparatively, 73.3% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by company insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Arconic pays out -15.1% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.
Arconic peers beat Arconic on 8 of the 15 factors compared.
Arconic Company Profile
Arconic Inc., formerly Alcoa Inc., is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging. The Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. The Engineered Products and Solutions segment develops and manufactures products for the aerospace (commercial and defense), commercial transportation and power generation end markets. The Transportation and Construction Solutions segment produces products that are used in the non-residential building and construction and commercial transportation end markets.
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