Contrasting Allegheny Technologies (ATI) & Synalloy (SYNL)

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

Volatility and Risk

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Allegheny Technologies has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500. Comparatively, Synalloy has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Profitability

This table compares Allegheny Technologies and Synalloy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegheny Technologies -2.61% 3.47% 1.06%
Synalloy 0.68% 4.73% 2.56%

Dividends

Synalloy pays an annual dividend of $0.13 per share and has a dividend yield of 0.8%. Allegheny Technologies does not pay a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Allegheny Technologies and Synalloy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegheny Technologies 1 2 6 0 2.56
Synalloy 0 0 0 0 N/A

Allegheny Technologies presently has a consensus target price of $29.22, suggesting a potential upside of 12.91%. Given Allegheny Technologies’ higher probable upside, equities research analysts plainly believe Allegheny Technologies is more favorable than Synalloy.

Institutional & Insider Ownership

49.8% of Synalloy shares are held by institutional investors. 1.0% of Allegheny Technologies shares are held by company insiders. Comparatively, 7.6% of Synalloy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Allegheny Technologies and Synalloy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegheny Technologies $3.53 billion 0.92 -$91.89 million $0.48 53.92
Synalloy $201.15 million 0.72 $1.34 million N/A N/A

Synalloy has lower revenue, but higher earnings than Allegheny Technologies.

Summary

Synalloy beats Allegheny Technologies on 7 of the 13 factors compared between the two stocks.

Allegheny Technologies Company Profile

Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials & Components, and Flat-Rolled Products. The High Performance Materials & Components segment produces, converts, and distributes a range of high performance materials, including titanium and titanium-based alloys; nickel-and cobalt-based alloys and superalloys; zirconium and related alloys, such as hafnium and niobium; powder alloys; and other specialty materials in long product forms of ingots, billets, bars, rods, wires, and shapes and rectangles, as well as seamless tubes, plus precision forgings, castings, components, and machined parts. This segment serves aerospace and defense, medical, oil and gas, and electrical energy markets. The Flat-Rolled Products segment provides stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys in various product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products. This segment serves various markets, such as chemical and hydrocarbon processing, automotive, aerospace and defense, food processing equipment and appliances, construction and mining, electronics, communication equipment, and computers. Allegheny Technologies Incorporated was founded in 1960 and is based in Pittsburgh, Pennsylvania.

Synalloy Company Profile

Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.

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