Head to Head Analysis: ATI (NYSE:ATI) & Cadre (NYSE:CDRE)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ATI and Cadre, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATI	0	1	9	1	3.00
Cadre	0	2	5	1	2.88

ATI presently has a consensus target price of $222.22, suggesting a potential upside of 17.90%. Cadre has a consensus target price of $44.17, suggesting a potential upside of 30.74%. Given Cadre’s higher probable upside, analysts clearly believe Cadre is more favorable than ATI.

Volatility and Risk

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

Valuation & Earnings

This table compares ATI and Cadre”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATI	$5.01 billion	5.11	$404.30 million	$4.00	47.12
Cadre	$732.65 million	1.98	$44.14 million	$0.95	35.56

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.

Dividends

ATI pays an annual dividend of $0.32 per share and has a dividend yield of 0.2%. Cadre pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. ATI pays out 8.0% of its earnings in the form of a dividend. Cadre pays out 42.1% 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. Cadre has increased its dividend for 2 consecutive years. Cadre is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

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	5.61%	13.26%	5.20%

Insider & Institutional Ownership

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

Summary

ATI beats Cadre on 11 of the 17 factors compared between the two stocks.

About ATI

ATI Inc. produces specialty materials and components for aerospace and defense, energy, medical, and other industrial markets. Its materials include titanium and titanium alloys, nickel- and cobalt-based alloys, specialty stainless steels, and other engineered metals designed for demanding applications. The company makes products such as sheet, plate, strip, and bar, along with precision forgings, castings, and engineered components. ATI serves customers worldwide through manufacturing and distribution operations in North America and other regions.

About Cadre

Cadre Holdings, Inc. designs, manufactures and distributes safety and survivability equipment for law enforcement, military personnel, first responders and other public-safety professionals. Its products include body armor, bomb suits and explosive-ordnance-disposal equipment, tactical gear, duty holsters, restraints, shields and protective clothing. The company sells products under brands including Safariland, Med-Eng, Armor Express and Mustang Survival. Its offerings serve customers in the United States and international markets.