Arconic (NYSE: ARNC) is one of 43 public companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare Arconic to related companies based on the strength of its institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

74.7% of Arconic shares are owned by institutional investors. Comparatively, 73.3% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of Arconic shares are owned by insiders. Comparatively, 6.6% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Arconic and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 4 0 2.67
Arconic Competitors 483 2206 2416 88 2.41

Arconic currently has a consensus target price of $29.17, suggesting a potential upside of 19.39%. As a group, “Aerospace & Defense” companies have a potential upside of 13.60%. Given Arconic’s stronger consensus rating and higher probable upside, research analysts clearly believe Arconic is more favorable than its rivals.

Profitability

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 -4.70% 9.71% 2.73%
Arconic Competitors -6.52% 22.41% 3.44%

Volatility & Risk

Arconic has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Arconic’s rivals have a beta of 1.06, meaning that their average share price is 6% more volatile than the S&P 500.

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. 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.

Earnings & Valuation

This table compares Arconic and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -15.36
Arconic Competitors $8.89 billion $721.62 million 199.36

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.

Summary

Arconic rivals beat Arconic on 8 of the 15 factors compared.

About Arconic

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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