Allegheny Technologies (NYSE: ATI) and Materion Corporation (NYSE:MTRN) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
This table compares Allegheny Technologies and Materion Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Allegheny Technologies and Materion Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Allegheny Technologies presently has a consensus target price of $20.57, suggesting a potential downside of 17.18%. Materion Corporation has a consensus target price of $35.50, suggesting a potential downside of 29.21%. Given Allegheny Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Allegheny Technologies is more favorable than Materion Corporation.
Materion Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Allegheny Technologies does not pay a dividend. Materion Corporation pays out 30.8% of its earnings in the form of a dividend. Materion Corporation has raised its dividend for 4 consecutive years.
Insider & Institutional Ownership
90.8% of Materion Corporation shares are held by institutional investors. 1.1% of Allegheny Technologies shares are held by company insiders. Comparatively, 2.9% of Materion Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Allegheny Technologies has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Materion Corporation has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Valuation & Earnings
This table compares Allegheny Technologies and Materion Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Allegheny Technologies||$3.31 billion||0.82||$295.80 million||($0.78)||-31.85|
|Materion Corporation||$1.02 billion||0.99||$74.35 million||$1.30||38.58|
Allegheny Technologies has higher revenue and earnings than Materion Corporation. Allegheny Technologies is trading at a lower price-to-earnings ratio than Materion Corporation, indicating that it is currently the more affordable of the two stocks.
Materion Corporation beats Allegheny Technologies on 9 of the 17 factors compared between the two stocks.
Allegheny Technologies Company Profile
Allegheny Technologies Incorporated is a manufacturer of specialty materials and complex components. The Company operates through two business segments: High Performance Materials & Components (HPMC), and Flat Rolled Products (FRP). The HPMC segment produces, converts and distributes a range of materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, zirconium and related alloys, including hafnium and niobium, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, castings, components and machined parts. The FRP segment produces, converts and distributes stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, in a range of product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products.
Materion Corporation Company Profile
Materion Corporation, through its subsidiaries, is an integrated producer of engineered materials used in a range of electrical, electronic, thermal, and structural applications. The Company operates in four segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Performance Alloys and Composites segment consists of businesses, such as Performance Metals and Technical Materials. The Advanced Materials segment produces chemicals, microelectronics packaging, precious metal, non-precious metal and specialty metal products. The Precision Coatings segment includes units, such as Precision Optics and Large Area Coatings. Its products include inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics and engineered clad, and plated metal systems.
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