Arconic (NASDAQ: ARNC) and Aluminum Corporation of China Limited (NYSE:ACH) are both large-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Valuation and Earnings
This table compares Arconic and Aluminum Corporation of China Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arconic||$12.56 billion||0.85||$1.35 billion||N/A||N/A|
|Aluminum Corporation of China Limited||$24.42 billion||0.46||$1.97 billion||$0.03||573.33|
This is a breakdown of recent ratings and recommmendations for Arconic and Aluminum Corporation of China Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aluminum Corporation of China Limited||0||0||1||0||3.00|
Arconic currently has a consensus target price of $26.25, indicating a potential upside of 8.07%. Given Arconic’s higher probable upside, analysts plainly believe Arconic is more favorable than Aluminum Corporation of China Limited.
Institutional & Insider Ownership
0.4% of Aluminum Corporation of China Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Arconic and Aluminum Corporation of China Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aluminum Corporation of China Limited||N/A||N/A||N/A|
Arconic beats Aluminum Corporation of China Limited on 6 of the 10 factors compared between the two stocks.
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.
Aluminum Corporation of China Limited Company Profile
Aluminum Corporation of China Limited (Chalco) is an aluminum producer with operations in bauxite and coal mining, alumina refining and primary aluminum smelting. The Company operates through alumina segment, including the mining and purchasing of bauxite and other raw materials, and production and sale of alumina, as well as alumina-related products; primary aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electricity power, the production and sale of primary aluminum and aluminum-related products; trading segment is engaged in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels; energy segment includes coal mining and power generation, including conventional coal-fire power generation and renewable energy generation, such as wind power and photovoltaic power, and corporate and other operating segment includes corporate and other aluminum-related research, development, and other activities.
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