Arconic (ARNC) & Its Competitors Head to Head Contrast

Arconic (NYSE: ARNC) is one of 42 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Arconic to related businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Profitability

This table compares Arconic and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arconic -4.70% 9.71% 2.73%
Arconic Competitors -6.90% 22.47% 3.38%

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Arconic pays out -11.2% 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 36.1% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Arconic and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -14.14
Arconic Competitors $8.89 billion $721.62 million 215.16

Arconic has higher revenue, but lower earnings than its competitors. Arconic is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

74.6% of Arconic shares are owned by institutional investors. Comparatively, 72.8% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by company insiders. Comparatively, 6.5% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arconic and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 5 0 2.71
Arconic Competitors 493 2220 2442 93 2.41

Arconic presently has a consensus price target of $30.00, suggesting a potential downside of 1.32%. As a group, “Aerospace & Defense” companies have a potential upside of 4.44%. Given Arconic’s competitors higher probable upside, analysts plainly believe Arconic has less favorable growth aspects than its competitors.

Volatility & Risk

Arconic has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Arconic’s competitors have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

Summary

Arconic competitors beat Arconic on 9 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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