Mechel PAO (NYSE: MTL) and Carpenter Technology Corporation (NYSE:CRS) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Mechel PAO and Carpenter Technology Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mechel PAO N/A N/A N/A
Carpenter Technology Corporation 2.61% 4.48% 1.83%

Risk and Volatility

Mechel PAO has a beta of -1.09, meaning that its share price is 209% less volatile than the S&P 500. Comparatively, Carpenter Technology Corporation has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mechel PAO and Carpenter Technology Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mechel PAO $9.52 billion 0.12 $2.49 billion N/A N/A
Carpenter Technology Corporation $1.80 billion 1.06 $213.50 million $1.00 40.71

Mechel PAO has higher revenue and earnings than Carpenter Technology Corporation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mechel PAO and Carpenter Technology Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mechel PAO 1 0 0 0 1.00
Carpenter Technology Corporation 0 2 3 0 2.60

Carpenter Technology Corporation has a consensus price target of $43.40, indicating a potential upside of 6.61%. Given Carpenter Technology Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Carpenter Technology Corporation is more favorable than Mechel PAO.

Insider & Institutional Ownership

8.3% of Mechel PAO shares are owned by institutional investors. Comparatively, 93.5% of Carpenter Technology Corporation shares are owned by institutional investors. 3.6% of Carpenter Technology Corporation shares 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.

Dividends

Carpenter Technology Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.8%. Mechel PAO does not pay a dividend. Carpenter Technology Corporation pays out 72.0% of its earnings in the form of a dividend.

Summary

Carpenter Technology Corporation beats Mechel PAO on 12 of the 15 factors compared between the two stocks.

Mechel PAO Company Profile

Mechel PAO, formerly Mechel OAO, is a holding company. The Company operates in the mining, steel and power industry segments. Its segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. It has freight seaports in Russia on the Sea of Japan and on the Sea of Azov, and a freight river port on the Kama River.

Carpenter Technology Corporation Company Profile

Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company’s segments include Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Its SAO segment consists of alloy and stainless steel manufacturing operations. Its PEP segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business and the Latrobe and Mexico distribution businesses. It develops, manufactures and distributes cast/wrought and powder metal stainless steels, and special alloys, including high temperature (iron-nickel-cobalt base), stainless, corrosion resistant, controlled expansion alloys, ultra-high strength and implantable alloys, tool and die steels and other specialty metals, as well as cast/wrought titanium alloys. The Company manufactures and rents down-hole drilling tools and components used in the oil and gas industry.

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