Century Aluminum (NASDAQ: CENX) and Alcoa Corp. (NYSE:AA) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitabiliy.

Valuation and Earnings

This table compares Century Aluminum and Alcoa Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Century Aluminum $1.37 billion 0.91 $48.03 million ($2.88) -4.98
Alcoa Corp. $9.84 billion 0.56 $1.45 billion N/A N/A

Alcoa Corp. has higher revenue and earnings than Century Aluminum.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Century Aluminum and Alcoa Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Aluminum 1 4 0 0 1.80
Alcoa Corp. 0 4 15 0 2.79

Century Aluminum presently has a consensus price target of $11.75, suggesting a potential downside of 18.12%. Alcoa Corp. has a consensus price target of $36.25, suggesting a potential upside of 20.83%. Given Alcoa Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Alcoa Corp. is more favorable than Century Aluminum.

Profitability

This table compares Century Aluminum and Alcoa Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Aluminum -4.27% -8.10% -4.08%
Alcoa Corp. N/A N/A N/A

Insider and Institutional Ownership

66.6% of Century Aluminum shares are owned by institutional investors. 0.5% of Century Aluminum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Alcoa Corp. beats Century Aluminum on 8 of the 11 factors compared between the two stocks.

Century Aluminum Company Profile

Century Aluminum Company (Century) is a holding company, which is a producer of primary aluminum and operates aluminum reduction facilities, or smelters, in the United States and Iceland. The Company operates through primary aluminum segment. The Company’s primary aluminum facilities produce standard grade primary aluminum products. As of December 31, 2016, its annual primary aluminum production capacity was approximately 1,012,000 tons per year (tpy). The Company’s principal subsidiaries are Century Kentucky, Inc. (CAKY), Nordural ehf (Nordural), Century Aluminum Sebree LLC (Century Sebree), Century Aluminum of South Carolina (CASC) and Century Aluminum of West Virginia, Inc. (Century of West Virginia). Its CAKY operates a primary aluminum reduction facility in Hawesville, Kentucky (Hawesville). Nordural Grundartangi ehf, a subsidiary of Nordural, operates a primary aluminum reduction facility in Grundartangi, Iceland (Grundartangi).

Alcoa Corp. Company Profile

Alcoa Corporation, formerly Alcoa Upstream Corporation, is engaged in the production of bauxite, alumina and aluminum of various cast and rolled products. The Company is engaged in the production and management of aluminum and alumina combined through its participation in various aspects of the industry, such as technology, mining, refining, smelting, and recycling. The Company’s segments include Bauxite, Alumina, Aluminum, Cast Products, Energy and Rolled Products. The Company’s Bauxite segment represents its global portfolio of bauxite mining assets. The Company’s Alumina segment represents its refining system across the world, and processes bauxite into alumina and sells it directly to internal and external smelter customers across the world. The Company’s Aluminum segment represents its smelter system across the world. Its Energy segment represents its portfolio of energy assets, with power production capacity of approximately 1,685 megawatts.

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