Allegheny Technologies (NYSE: ATI) and Northwest Pipe (NASDAQ:NWPX) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Insider & Institutional Ownership
85.4% of Northwest Pipe shares are held by institutional investors. 1.0% of Allegheny Technologies shares are held by company insiders. Comparatively, 2.9% of Northwest Pipe shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Allegheny Technologies and Northwest Pipe’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allegheny Technologies||$3.53 billion||1.02||-$91.89 million||$0.48||59.88|
|Northwest Pipe||$132.78 million||1.57||-$10.16 million||($0.65)||-32.89|
Northwest Pipe has lower revenue, but higher earnings than Allegheny Technologies. Northwest Pipe is trading at a lower price-to-earnings ratio than Allegheny Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Allegheny Technologies has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Northwest Pipe has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Allegheny Technologies and Northwest Pipe, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Allegheny Technologies currently has a consensus price target of $29.56, indicating a potential upside of 2.84%. Given Allegheny Technologies’ higher possible upside, analysts clearly believe Allegheny Technologies is more favorable than Northwest Pipe.
This table compares Allegheny Technologies and Northwest Pipe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Allegheny Technologies beats Northwest Pipe on 8 of the 13 factors compared between the two stocks.
About Allegheny Technologies
Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials & Components, and Flat-Rolled Products. The High Performance Materials & Components segment produces, converts, and distributes a range of high performance materials, including titanium and titanium-based alloys; nickel-and cobalt-based alloys and superalloys; zirconium and related alloys, such as hafnium and niobium; powder alloys; and other specialty materials in long product forms of ingots, billets, bars, rods, wires, and shapes and rectangles, as well as seamless tubes, plus precision forgings, castings, components, and machined parts. This segment serves aerospace and defense, medical, oil and gas, and electrical energy markets. The Flat-Rolled Products segment provides stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys in various product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products. This segment serves various markets, such as chemical and hydrocarbon processing, automotive, aerospace and defense, food processing equipment and appliances, construction and mining, electronics, communication equipment, and computers. Allegheny Technologies Incorporated was founded in 1960 and is based in Pittsburgh, Pennsylvania.
About Northwest Pipe
Northwest Pipe Company manufactures engineered steel pipe water systems in North America. It produces large-diameter, high-pressure, and engineered welded steel pipeline systems for use in drinking water infrastructure; and pipes for piling and hydroelectric projects, wastewater treatment plants, and other applications, as well as for industrial plant piping systems and structural applications. The company sells its products primarily to public water agencies directly or through installation contractors. Northwest Pipe Company was founded in 1966 and is headquartered in Vancouver, Washington.
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