Critical Comparison: Allegheny Technologies (ATI) & Global Brass and Copper Holdings (BRSS)

Allegheny Technologies (NYSE: ATI) and Global Brass and Copper Holdings (NYSE:BRSS) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Allegheny Technologies and Global Brass and Copper Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegheny Technologies -2.45% 1.09% 0.31%
Global Brass and Copper Holdings 3.61% 47.75% 9.16%

Analyst Ratings

This is a breakdown of current recommendations for Allegheny Technologies and Global Brass and Copper Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegheny Technologies 0 5 3 0 2.38
Global Brass and Copper Holdings 0 1 0 0 2.00

Allegheny Technologies presently has a consensus target price of $20.57, indicating a potential downside of 6.20%. Given Allegheny Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Allegheny Technologies is more favorable than Global Brass and Copper Holdings.

Institutional and Insider Ownership

95.2% of Global Brass and Copper Holdings shares are held by institutional investors. 1.1% of Allegheny Technologies shares are held by company insiders. Comparatively, 3.2% of Global Brass and Copper Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Allegheny Technologies has a beta of 2.44, indicating that its stock price is 144% more volatile than the S&P 500. Comparatively, Global Brass and Copper Holdings has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Earnings & Valuation

This table compares Allegheny Technologies and Global Brass and Copper Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Allegheny Technologies $3.13 billion 0.76 -$640.90 million ($0.82) -26.74
Global Brass and Copper Holdings $1.34 billion 0.53 $32.20 million $2.41 13.49

Global Brass and Copper Holdings has higher revenue, but lower earnings than Allegheny Technologies. Allegheny Technologies is trading at a lower price-to-earnings ratio than Global Brass and Copper Holdings, indicating that it is currently the more affordable of the two stocks.

Dividends

Global Brass and Copper Holdings pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Allegheny Technologies does not pay a dividend. Global Brass and Copper Holdings pays out 10.0% of its earnings in the form of a dividend.

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 Global Brass and Copper Holdings

Global Brass and Copper Holdings, Inc. is a converter, fabricator, processor and distributor of specialized non-ferrous products, including a range of sheet, strip, foil, rod, tube and fabricated metal component products. The Company operates through three segments: Olin Brass, Chase Brass and A.J. Oster. Its Olin Brass segment is engaged in manufacturing, fabricating and converting specialized copper and brass sheet, strip, foil, tube and fabricated products. The Chase Brass segment is engaged in manufacturing brass rod, including round, hexagonal and other shapes. The A.J. Oster segment is engaged in processing and distributing copper and copper-alloy sheet, strip and foil, operating six service centers in the United States, Puerto Rico and Mexico. Its products are used in a range of applications across markets, including the building and housing, munitions, automotive, transportation, coinage, industrial machinery and equipment, and general consumer end markets.

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