Carpenter Technology (NYSE:CRS) and China Precision Steel (OTCMKTS:CPSL) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Carpenter Technology and China Precision Steel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carpenter Technology $2.16 billion 0.88 $188.50 million $2.50 15.94
China Precision Steel N/A N/A N/A N/A N/A

Carpenter Technology has higher revenue and earnings than China Precision Steel.

Dividends

Carpenter Technology pays an annual dividend of $0.80 per share and has a dividend yield of 2.0%. China Precision Steel does not pay a dividend. Carpenter Technology pays out 32.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

94.1% of Carpenter Technology shares are held by institutional investors. 3.1% of Carpenter Technology shares are held by insiders. Comparatively, 0.4% of China Precision Steel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Carpenter Technology and China Precision Steel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carpenter Technology 0 2 1 0 2.33
China Precision Steel 0 0 0 0 N/A

Carpenter Technology presently has a consensus price target of $51.00, indicating a potential upside of 27.95%.

Profitability

This table compares Carpenter Technology and China Precision Steel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carpenter Technology 8.74% 9.03% 4.29%
China Precision Steel N/A N/A N/A

Summary

Carpenter Technology beats China Precision Steel on 8 of the 9 factors compared between the two stocks.

About Carpenter Technology

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The company operates through two segments, Specialty Alloys Operations and Performance Engineered Products. It offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as drilling tools; and metal powders and parts. The company serves the aerospace, defense, transportation, energy, medical, industrial, and consumer markets. Carpenter Technology Corporation was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

About China Precision Steel

China Precision Steel, Inc., a steel processing company, manufactures and sells cold-rolled precision steel products. It produces and sells precision cold-rolled steel products ranging from 7.5 mm to 0.03 mm. The company's steel products comprise cold-rolled and hard-rolled low carbon steel products for steel roofing, food packaging, dry batteries, electronic devices, and kitchen tools; cold-rolled and hard-rolled high carbon steel products for automobile parts and components, grinding pieces, saw blades, and weaving needles; and tailor made cold rolled steel products. It also provides heat treatment, and cutting and slitting services for medium and high-carbon hot-rolled steel strips not exceeding 7.5 mm thickness. The company sells its products to component manufacturers and directly to the end-users in the People's Republic of China, Indonesia, Thailand, the Caribbean, Nigeria, Ethiopia, and Turkey. China Precision Steel, Inc. is headquartered in Sheung Wan, Hong Kong.

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