Allegheny Technologies (NYSE: ATI) and Fortuna Silver Mines (NYSE:FSM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
This is a breakdown of current recommendations and price targets for Allegheny Technologies and Fortuna Silver Mines, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fortuna Silver Mines||0||1||3||1||3.00|
Allegheny Technologies presently has a consensus price target of $20.60, indicating a potential downside of 17.10%. Fortuna Silver Mines has a consensus price target of $7.50, indicating a potential upside of 61.29%. Given Fortuna Silver Mines’ stronger consensus rating and higher probable upside, analysts plainly believe Fortuna Silver Mines is more favorable than Allegheny Technologies.
Institutional & Insider Ownership
44.7% of Fortuna Silver Mines shares are held by institutional investors. 1.1% of Allegheny Technologies shares are held by insiders. 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.
This table compares Allegheny Technologies and Fortuna Silver Mines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fortuna Silver Mines||15.97%||9.08%||7.07%|
Earnings & Valuation
This table compares Allegheny Technologies and Fortuna Silver Mines’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Allegheny Technologies||$3.31 billion||0.82||$295.80 million||($4.61)||-5.39|
|Fortuna Silver Mines||$251.82 million||2.94||$118.59 million||$0.25||18.60|
Allegheny Technologies has higher revenue and earnings than Fortuna Silver Mines. Allegheny Technologies is trading at a lower price-to-earnings ratio than Fortuna Silver Mines, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Allegheny Technologies has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Fortuna Silver Mines has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.
Fortuna Silver Mines beats Allegheny Technologies on 9 of the 13 factors compared between the two stocks.
About Allegheny Technologies
Allegheny Technologies Incorporated is a manufacturer of specialty materials and complex components. The Company operates through two business segments: High Performance Materials & Components (HPMC), and Flat Rolled Products (FRP). The HPMC segment produces, converts and distributes a range of materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, zirconium and related alloys, including hafnium and niobium, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, castings, components and machined parts. The FRP segment produces, converts and distributes stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, in a range of product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products.
About Fortuna Silver Mines
Fortuna Silver Mines Inc. is a Canada-based mining company engaged in silver mining and related activities in Latin America, including exploration, extraction and processing. The Company operates the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru and the San Jose silver and gold mine (San Jose) in southern Mexico. The Company’s segments include Corporate, Bateas and Cuzcatlan. The Company owns interest in the Caylloma mine and related mining concessions located in southern Peru. The Caylloma property is located in the Caylloma Mining District, approximately 220 kilometers north-northwest of Arequipa, Peru. The Company produces approximately 1.7 million ounces of silver and over 1,160 ounces of gold at Caylloma. The Company’s San Jose property, which covers a silver gold bearing epithermal vein system is located in the state of Oaxaca in southern Mexico. The Company produces approximately 4.9 million ounces of silver and over 38,530 ounces of gold at San Jose.
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