Mueller Industries (NYSE:MLI) and Howmet Aerospace (NYSE:HWM) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Mueller Industries and Howmet Aerospace, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Industries 0 1 0 0 2.00
Howmet Aerospace 0 1 0 0 2.00

Howmet Aerospace has a consensus price target of $14.00, suggesting a potential upside of 29.99%. Given Howmet Aerospace’s higher possible upside, analysts clearly believe Howmet Aerospace is more favorable than Mueller Industries.

Earnings & Valuation

This table compares Mueller Industries and Howmet Aerospace’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mueller Industries $2.43 billion 0.52 $100.97 million $2.19 10.13
Howmet Aerospace $14.19 billion 0.33 $470.00 million $2.11 5.10

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

Insider & Institutional Ownership

91.4% of Mueller Industries shares are owned by institutional investors. Comparatively, 83.9% of Howmet Aerospace shares are owned by institutional investors. 2.9% of Mueller Industries shares are owned by company insiders. Comparatively, 0.1% of Howmet Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Mueller Industries and Howmet Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mueller Industries 4.86% 16.99% 7.70%
Howmet Aerospace 3.59% 22.09% 5.81%

Risk & Volatility

Mueller Industries has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Howmet Aerospace has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Dividends

Mueller Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Howmet Aerospace pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Mueller Industries pays out 18.3% of its earnings in the form of a dividend. Howmet Aerospace pays out 3.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Mueller Industries beats Howmet Aerospace on 8 of the 14 factors compared between the two stocks.

About Mueller Industries

Mueller Industries, Inc. engages in the manufacture of copper, brass, aluminum, and plastic products. It operates through the following segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment consists of domestic piping systems group, Canadian operations, European operations, trading group, Jiangsu Mueller-Xingrong Copper Industries Limited, and Jungwoo Metal Ind. Co., LTD. The Industrial Metals segment includes brass rod and copper bar products, impacts and micro gauge, and brass value-added products. The Climate segment offers refrigeration products, fabricated tube products, Westermeyer Industries, Inc., and Turbotec Products, Inc. The company was founded on October 3, 1990 and is headquartered in Memphis, TN.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries. It offers jet engine components, aerospace fastening systems, and titanium structural parts for mission-critical performance and efficiency in aerospace and defense applications, as well as forged wheels for commercial transportation. The company, formerly known as Arconic Inc., is headquartered in Pittsburgh, Pennsylvania.

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