Critical Contrast: General Cable (BGC) & Atkore International Group (ATKR)

General Cable (NYSE: BGC) and Atkore International Group (NYSE:ATKR) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares General Cable and Atkore International Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cable -4.71% 43.57% 2.85%
Atkore International Group 5.27% 23.76% 7.25%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for General Cable and Atkore International Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cable 0 0 0 0 N/A
Atkore International Group 0 0 3 0 3.00

Atkore International Group has a consensus target price of $23.67, indicating a potential upside of 9.77%. Given Atkore International Group’s higher probable upside, analysts plainly believe Atkore International Group is more favorable than General Cable.

Insider and Institutional Ownership

99.8% of General Cable shares are owned by institutional investors. Comparatively, 98.3% of Atkore International Group shares are owned by institutional investors. 1.8% of General Cable shares are owned by insiders. Comparatively, 51.0% of Atkore International Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares General Cable and Atkore International Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Cable $3.86 billion 0.39 -$93.80 million ($3.56) -8.30
Atkore International Group $1.50 billion 0.91 $84.63 million $1.27 16.98

Atkore International Group has lower revenue, but higher earnings than General Cable. General Cable is trading at a lower price-to-earnings ratio than Atkore International Group, indicating that it is currently the more affordable of the two stocks.

Dividends

General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Atkore International Group does not pay a dividend. General Cable pays out -20.2% of its earnings in the form of a dividend.

Summary

Atkore International Group beats General Cable on 9 of the 14 factors compared between the two stocks.

About General Cable

General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.

About Atkore International Group

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

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