Critical Survey: ATI (NYSE:ATI) versus Cadre (NYSE:CDRE)

ATI (NYSE:ATI) and Cadre (NYSE:CDRE) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares ATI and Cadre’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATI	11.08%	32.30%	11.84%
Cadre	5.26%	12.02%	4.80%

Analyst Recommendations

This is a summary of current recommendations and price targets for ATI and Cadre, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATI	0	1	9	1	3.00
Cadre	0	2	6	1	2.89

ATI presently has a consensus price target of $222.22, indicating a potential upside of 32.11%. Cadre has a consensus price target of $43.33, indicating a potential upside of 34.58%. Given Cadre’s higher probable upside, analysts clearly believe Cadre is more favorable than ATI.

Institutional & Insider Ownership

44.0% of Cadre shares are owned by institutional investors. 1.0% of ATI shares are owned by insiders. Comparatively, 30.1% of Cadre shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ATI and Cadre”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATI	$4.59 billion	4.98	$404.30 million	$4.00	42.05
Cadre	$610.31 million	2.26	$44.14 million	$0.85	37.88

ATI has higher revenue and earnings than Cadre. Cadre is trading at a lower price-to-earnings ratio than ATI, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ATI has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Cadre has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Summary

ATI beats Cadre on 10 of the 14 factors compared between the two stocks.

About ATI

ATI Inc. produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

About Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.