Noranda Aluminum Holding (NYSE: NOR) and Kaiser Aluminum Corporation (NASDAQ:KALU) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitabiliy and earnings.
Kaiser Aluminum Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Noranda Aluminum Holding does not pay a dividend. Kaiser Aluminum Corporation pays out 35.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Noranda Aluminum Holding and Kaiser Aluminum Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Noranda Aluminum Holding||N/A||N/A||N/A||N/A||N/A|
|Kaiser Aluminum Corporation||$1.34 billion||1.10||$230.90 million||$5.66||15.13|
Kaiser Aluminum Corporation has higher revenue and earnings than Noranda Aluminum Holding.
Institutional & Insider Ownership
98.0% of Kaiser Aluminum Corporation shares are owned by institutional investors. 2.8% of Kaiser Aluminum Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Noranda Aluminum Holding and Kaiser Aluminum Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Noranda Aluminum Holding||0||0||0||0||N/A|
|Kaiser Aluminum Corporation||1||2||3||0||2.33|
Kaiser Aluminum Corporation has a consensus price target of $91.67, indicating a potential upside of 7.02%. Given Kaiser Aluminum Corporation’s higher probable upside, analysts clearly believe Kaiser Aluminum Corporation is more favorable than Noranda Aluminum Holding.
This table compares Noranda Aluminum Holding and Kaiser Aluminum Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Noranda Aluminum Holding||N/A||N/A||N/A|
|Kaiser Aluminum Corporation||7.55%||10.73%||6.06%|
Kaiser Aluminum Corporation beats Noranda Aluminum Holding on 9 of the 10 factors compared between the two stocks.
Noranda Aluminum Holding Company Profile
Noranda Aluminum Holding Corporation is a producer of primary aluminum, alumina, bauxite and rolled aluminum coils. The Company produces aluminum products in a range of forms, such as billet, rod, sow and foundry. The Company operates through five segments: Bauxite, Alumina, Primary Aluminum, Flat-Rolled Products and Corporate. The Company has two businesses: Upstream Business and Downstream Business. Its Upstream Business consists of three segments: Primary Aluminum, Alumina and Bauxite. The Primary segment consists of a smelter near New Madrid, Missouri (New Madrid). The Alumina segment consists of an alumina refinery near Gramercy, Louisiana (Gramercy). The Bauxite segment consists of a bauxite mining operation (St. Ann). Its Downstream Business consists of its Flat-Rolled Products segment, which is an aluminum foil producer in North America, and consists of approximately four rolling mills at approximately three facilities.
Kaiser Aluminum Corporation Company Profile
Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The Company operates in the Fabricated Products segment. The Company’s Fabricated Products segment focuses on producing rolled, extruded and drawn aluminum products used principally for aerospace and defense, automotive and general engineering products that include consumer durables, electronics, electrical and machinery and equipment applications. The Company offers its products for various end market applications, such as aerospace and high strength (Aero/HS products); automotive (Automotive Extrusions); general engineering (GE products), and other industrial (Other products). The Company’s fabricated aluminum mill products include flat-rolled (plate and sheet), extruded (rod, bar, hollows and shapes), drawn (rod, bar, pipe and tube) and cast aluminum products.
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