Head to Head Review: Voestalpine (OTCMKTS:VLPNY) and ATI (NYSE:ATI)

Voestalpine (OTCMKTS:VLPNY) and ATI (NYSE:ATI) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Voestalpine	0.99%	2.08%	0.99%
ATI	8.93%	21.37%	7.66%

Dividends

Voestalpine pays an annual dividend of $0.10 per share and has a dividend yield of 2.0%. ATI pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Voestalpine pays out 50.0% of its earnings in the form of a dividend. ATI pays out 11.6% 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.

Risk and Volatility

Voestalpine has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, ATI has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Voestalpine and ATI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Voestalpine	$16.90 billion	0.25	$164.90 million	$0.20	24.50
ATI	$4.46 billion	2.64	$367.80 million	$2.76	30.27

ATI has lower revenue, but higher earnings than Voestalpine. Voestalpine 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 current recommendations for Voestalpine and ATI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Voestalpine	0	2	0	0	2.00
ATI	0	1	7	0	2.88

ATI has a consensus target price of $78.29, indicating a potential downside of 6.30%. Given ATI’s stronger consensus rating and higher possible upside, analysts clearly believe ATI is more favorable than Voestalpine.

Summary

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

About Voestalpine

Voestalpine AG processes, develops, manufactures, and sells steel products in Austria, European Union, and internationally. The company operates through five segments: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Other. The Steel division produces hot and cold-rolled steel strips, as well as electrogalvanized, hot-dip galvanized, and organically coated steel strips; and heavy plates for the energy sector, as well as turbine casings for automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The High Performance Metals segment offers special alloys for the oil and natural gas, aerospace, and energy engineering industries; tool manufacturing, component processing, heat treatment, and coating services; and warehousing and preprocessing of special steels, as well as services, including logistics, distribution, and processing for the oil and natural gas industries for automotive, white goods/consumer goods, building/construction, aerospace, mechanical engineering, and others. The Metal Engineering division offers rails and turnout products, rod and drawn wires, seamless tubes, and welding consumables and machinery; rails and digital monitoring systems; and services for rail infrastructure. This segment serves railway systems, automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The Metal Forming division manufactures special tubes and sections, and precision strip steel products, as well as pre-finished system components made from pressed, stamped, and roll-profiled parts for use in automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The company is headquartered in Linz, Austria.

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.