Head to Head Comparison: Materion (NYSE:MTRN) & IBC Advanced Alloys (OTCMKTS:IAALF)

Materion (NYSE:MTRN) and IBC Advanced Alloys (OTCMKTS:IAALF) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Materion and IBC Advanced Alloys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Materion	0	2	2	0	2.50
IBC Advanced Alloys	0	0	0	0	0.00

Materion currently has a consensus target price of $170.00, indicating a potential upside of 3.93%. Given Materion’s stronger consensus rating and higher probable upside, equities analysts plainly believe Materion is more favorable than IBC Advanced Alloys.

Profitability

This table compares Materion and IBC Advanced Alloys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Materion	4.19%	12.36%	6.41%
IBC Advanced Alloys	-10.84%	-76.63%	-6.70%

Earnings & Valuation

This table compares Materion and IBC Advanced Alloys”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Materion	$1.79 billion	1.90	$74.82 million	$3.59	45.56
IBC Advanced Alloys	$17.76 million	0.87	-$3.41 million	($0.02)	-6.73

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

Insider & Institutional Ownership

93.6% of Materion shares are held by institutional investors. 2.8% of Materion shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Materion has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, IBC Advanced Alloys has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Summary

Materion beats IBC Advanced Alloys on 13 of the 14 factors compared between the two stocks.

About Materion

Materion Corporation, together with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The company provides advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, and wire products, as well as engineered strip metal products; and ToughMet alloys and SupremEX aluminum silicon carbide metal matrix composite formulation products. It operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale. In addition, it produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire. Further, the company designs and produces precision thin film coatings, optical filters, and assemblies. The company sells its products directly from its facilities, as well as through company-owned service centers, outside distributors, agents, direct sales offices, and independent sales representatives. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in March 2011. Materion Corporation was founded in 1921 and is headquartered in Mayfield Heights, Ohio.

About IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.