Allegheny Technologies (NYSE: ATI) and BHP Billiton PLC (NYSE:BBL) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Insider and Institutional Ownership

96.6% of Allegheny Technologies shares are held by institutional investors. Comparatively, 4.1% of BHP Billiton PLC shares are held by institutional investors. 1.1% of Allegheny Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Allegheny Technologies and BHP Billiton PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allegheny Technologies $3.31 billion 0.75 $295.80 million ($4.61) -4.93
BHP Billiton PLC $39.02 billion 2.49 $19.52 billion N/A N/A

BHP Billiton PLC has higher revenue and earnings than Allegheny Technologies.

Dividends

BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.5%. Allegheny Technologies does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Allegheny Technologies -14.89% 0.08% 0.02%
BHP Billiton PLC N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Allegheny Technologies and BHP Billiton PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegheny Technologies 0 4 4 0 2.50
BHP Billiton PLC 1 2 2 0 2.20

Allegheny Technologies presently has a consensus target price of $20.65, suggesting a potential downside of 9.11%. BHP Billiton PLC has a consensus target price of $37.00, suggesting a potential upside of 1.34%. Given BHP Billiton PLC’s higher possible upside, analysts plainly believe BHP Billiton PLC is more favorable than Allegheny Technologies.

Risk and Volatility

Allegheny Technologies has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, BHP Billiton PLC has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Allegheny Technologies beats BHP Billiton PLC on 7 of the 13 factors compared between the two stocks.

About Allegheny Technologies

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.

About BHP Billiton PLC

BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.

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