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 businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Arconic pays out -11.2% 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 34.2% of their earnings in the form of a dividend.

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 -6.49% 22.42% 3.45%

Analyst Recommendations

This is a summary of recent ratings for Arconic and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arconic 0 2 4 0 2.67
Arconic Competitors 482 2205 2413 88 2.41

Arconic presently has a consensus price target of $29.17, indicating a potential upside of 19.19%. As a group, “Aerospace & Defense” companies have a potential upside of 13.45%. Given Arconic’s stronger consensus rating and higher probable upside, analysts plainly believe Arconic is more favorable than its rivals.

Institutional and 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 company insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Arconic and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arconic $12.39 billion -$941.00 million -11.43
Arconic Competitors $8.89 billion $721.62 million 211.76

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.

Risk and Volatility

Arconic has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Arconic’s rivals have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

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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