Analyzing ATI (NYSE:ATI) and Metallus (NYSE:MTUS)

ATI (NYSE:ATI) and Metallus (NYSE:MTUS) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares ATI and Metallus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATI	8.93%	21.37%	7.66%
Metallus	-2.05%	0.31%	0.20%

Risk & Volatility

ATI has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Metallus has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

77.6% of Metallus shares are held by institutional investors. 1.1% of ATI shares are held by insiders. Comparatively, 3.6% of Metallus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ATI and Metallus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATI	$4.36 billion	2.67	$367.80 million	$2.76	29.86
Metallus	$1.08 billion	0.56	$1.30 million	($0.50)	-28.69

ATI has higher revenue and earnings than Metallus. Metallus is trading at a lower price-to-earnings ratio than ATI, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for ATI and Metallus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATI	0	1	7	0	2.88
Metallus	0	1	0	0	2.00

ATI presently has a consensus target price of $78.29, suggesting a potential downside of 5.02%. Given ATI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ATI is more favorable than Metallus.

Summary

ATI beats Metallus on 11 of the 14 factors compared between the two stocks.

About ATI

ATI Inc. produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.