Arconic (NYSE: ARNC) is one of 39 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Arconic to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, risk and valuation.
This table compares Arconic and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Arconic pays out -15.1% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for Arconic and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arconic presently has a consensus price target of $29.17, suggesting a potential upside of 8.83%. As a group, “Aerospace & Defense” companies have a potential upside of 10.38%. Given Arconic’s rivals higher possible upside, analysts clearly believe Arconic has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Arconic and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Arconic||$12.39 billion||-$941.00 million||-16.86|
|Arconic Competitors||$8.89 billion||$721.62 million||263.10|
Arconic has higher revenue, but lower earnings than its rivals. Arconic is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
74.6% of Arconic shares are owned by institutional investors. Comparatively, 72.8% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by company insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are owned 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.
Volatility & Risk
Arconic has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Arconic’s rivals have a beta of 1.07, indicating that their average share price is 7% more volatile than the S&P 500.
Arconic rivals beat Arconic on 9 of the 15 factors compared.
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.
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