AA vs. ESAB, MLI, FLS, GTLS, TKR, ADT, BERY, SITE, MIDD, and MSA
Should you be buying Alcoa stock or one of its competitors? The main competitors of Alcoa include ESAB (ESAB), Mueller Industries (MLI), Flowserve (FLS), Chart Industries (GTLS), Timken (TKR), ADT (ADT), Berry Global Group (BERY), SiteOne Landscape Supply (SITE), Middleby (MIDD), and MSA Safety (MSA). These companies are all part of the "industrial products" sector.
ESAB (NYSE:ESAB) and Alcoa (NYSE:AA) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, media sentiment, dividends, profitability, risk, institutional ownership and community ranking.
In the previous week, Alcoa had 3 more articles in the media than ESAB. MarketBeat recorded 7 mentions for Alcoa and 4 mentions for ESAB. Alcoa's average media sentiment score of 1.05 beat ESAB's score of 0.76 indicating that ESAB is being referred to more favorably in the media.
ESAB has a net margin of 8.39% compared to ESAB's net margin of -6.41%. Alcoa's return on equity of 17.59% beat ESAB's return on equity.
ESAB has higher earnings, but lower revenue than Alcoa. Alcoa is trading at a lower price-to-earnings ratio than ESAB, indicating that it is currently the more affordable of the two stocks.
ESAB has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Alcoa has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.
ESAB presently has a consensus price target of $96.29, indicating a potential downside of 10.87%. Alcoa has a consensus price target of $33.54, indicating a potential downside of 18.63%. Given Alcoa's stronger consensus rating and higher possible upside, analysts clearly believe ESAB is more favorable than Alcoa.
Alcoa received 1005 more outperform votes than ESAB when rated by MarketBeat users. Likewise, 67.04% of users gave Alcoa an outperform vote while only 37.50% of users gave ESAB an outperform vote.
ESAB pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. Alcoa pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. ESAB pays out 6.3% of its earnings in the form of a dividend. Alcoa pays out -10.6% 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. ESAB has raised its dividend for 1 consecutive years. Alcoa is clearly the better dividend stock, given its higher yield and lower payout ratio.
91.1% of ESAB shares are owned by institutional investors. 7.0% of ESAB shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
ESAB beats Alcoa on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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