Aluminum Corporation of China Limited (NYSE: ACH) and Arconic (NASDAQ:ARNC) are both large-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Aluminum Corporation of China Limited and Arconic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aluminum Corporation of China Limited 0 0 2 0 3.00
Arconic 1 3 5 0 2.44

Arconic has a consensus price target of $27.11, indicating a potential upside of 7.71%. Given Arconic’s higher possible upside, analysts clearly believe Arconic is more favorable than Aluminum Corporation of China Limited.

Profitability

This table compares Aluminum Corporation of China Limited and Arconic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aluminum Corporation of China Limited N/A N/A N/A
Arconic 6.50% 14.01% 4.33%

Institutional and Insider Ownership

0.3% of Aluminum Corporation of China Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Aluminum Corporation of China Limited and Arconic’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aluminum Corporation of China Limited $24.58 billion 0.46 $1.98 billion $0.03 575.00
Arconic $12.56 billion 0.88 $1.35 billion N/A N/A

Aluminum Corporation of China Limited has higher revenue and earnings than Arconic.

Summary

Arconic beats Aluminum Corporation of China Limited on 6 of the 10 factors compared between the two stocks.

About Aluminum Corporation of China Limited

Aluminum Corporation of China Limited (Chalco) is an aluminum producer with operations in bauxite and coal mining, alumina refining and primary aluminum smelting. The Company operates through alumina segment, including the mining and purchasing of bauxite and other raw materials, and production and sale of alumina, as well as alumina-related products; primary aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electricity power, the production and sale of primary aluminum and aluminum-related products; trading segment is engaged in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels; energy segment includes coal mining and power generation, including conventional coal-fire power generation and renewable energy generation, such as wind power and photovoltaic power, and corporate and other operating segment includes corporate and other aluminum-related research, development, and other activities.

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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