Contrasting Aluminum Co. of China (ACH) and Norsk Hydro ASA (NHYDY)

Aluminum Co. of China (NYSE: ACH) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

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0.4% of Aluminum Co. of China shares are held by institutional investors. Comparatively, 0.1% of Norsk Hydro ASA shares are held by institutional investors. 0.0% of Norsk Hydro ASA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Aluminum Co. of China has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Dividends

Norsk Hydro ASA pays an annual dividend of $0.11 per share and has a dividend yield of 1.9%. Aluminum Co. of China does not pay a dividend. Norsk Hydro ASA pays out 22.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Aluminum Co. of China and Norsk Hydro ASA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aluminum Co. of China $26.65 billion 0.31 $204.00 million N/A N/A
Norsk Hydro ASA $13.93 billion 0.86 $1.08 billion $0.48 12.17

Norsk Hydro ASA has lower revenue, but higher earnings than Aluminum Co. of China.

Profitability

This table compares Aluminum Co. of China and Norsk Hydro ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aluminum Co. of China N/A N/A N/A
Norsk Hydro ASA 7.97% 9.50% 6.26%

Analyst Recommendations

This is a summary of recent ratings and price targets for Aluminum Co. of China and Norsk Hydro ASA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aluminum Co. of China 0 3 1 0 2.25
Norsk Hydro ASA 1 2 2 0 2.20

Summary

Norsk Hydro ASA beats Aluminum Co. of China on 9 of the 13 factors compared between the two stocks.

Aluminum Co. of China Company Profile

Aluminum Corporation of China Limited, together with its subsidiaries, engages in the manufacture and distribution of alumina, primary aluminum and energy products in the People's Republic of China. It operates through Alumina, Primary Aluminum, Trading, and Energy segments. The Alumina segment is involved in mining and purchasing of bauxite and other raw materials; and production and sale of alumina, as well as alumina-related products, such as alumina hydrate, alumina-based chemical products, and gallium. The Primary Aluminum segment procures alumina and other raw materials, supplemental materials, and electricity power; and produces and sells aluminum and aluminum-related products, such as carbon products, aluminum alloy products, and other electrolytic aluminum products. The Trading segment trades in alumina, primary aluminum, aluminum fabrication products, other non-ferrous metal products, coal products, raw and ancillary materials, and supplemental materials; and provides logistics and transport services to external customers. The Energy segment engages in the research and development, production, and operation of energy products, including coal mining; generates and sells electricity to regional power grid corporations using thermal power, wind power, and solar power sources; and manufacture of energy related equipment. The company also manufactures, acquires, and distributes bauxite mines, limestone ore, aluminum magnesium ore, and related nonferrous metal products; and provides research and development services. The company was founded in 2001 and is based in Beijing, the People's Republic of China.

Norsk Hydro ASA Company Profile

Norsk Hydro ASA (Hydro) is an integrated aluminum company with operations in various activities along the aluminum industry’s value chain. The Company operates through six segments: Bauxite & Alumina, which includes bauxite mining activities, production of alumina and related commercial activities, primarily the sale of alumina; Primary Metal, which includes primary aluminum production and casting activities; Metal Markets, which include sales activities relating to products from the its primary metal plants and operational responsibility for Hydro’s stand-alone remelters, as well as physical and financial metal trading activities; Rolled Products, which include Hydro’s rolling mills; Energy, which includes energy sourcing for Hydro’s aluminum operations around the world, and Other and eliminations, which consists of its captive insurance company Industriforsikring, its industry parks, internal service providers, operation of Sapa and other activities.

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