ATI (NYSE:ATI – Get Free Report) and MTU Aero Engines (OTCMKTS:MTUAY – Get Free Report) are both large-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Profitability
This table compares ATI and MTU Aero Engines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ATI | 11.08% | 32.30% | 11.84% |
| MTU Aero Engines | 9.87% | 22.52% | 7.75% |
Analyst Ratings
This is a summary of recent recommendations and price targets for ATI and MTU Aero Engines, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ATI | 0 | 1 | 9 | 1 | 3.00 |
| MTU Aero Engines | 3 | 2 | 4 | 1 | 2.30 |
ATI currently has a consensus price target of $222.22, suggesting a potential upside of 26.75%. Given ATI’s stronger consensus rating and higher possible upside, equities analysts plainly believe ATI is more favorable than MTU Aero Engines.
Risk & Volatility
ATI has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.
Insider & Institutional Ownership
0.0% of MTU Aero Engines shares are held by institutional investors. 1.0% of ATI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares ATI and MTU Aero Engines”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ATI | $4.59 billion | 5.19 | $404.30 million | $4.00 | 43.83 |
| MTU Aero Engines | $9.91 billion | 2.09 | $1.15 billion | $9.91 | 19.39 |
MTU Aero Engines has higher revenue and earnings than ATI. MTU Aero Engines is trading at a lower price-to-earnings ratio than ATI, indicating that it is currently the more affordable of the two stocks.
Summary
ATI beats MTU Aero Engines on 9 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 MTU Aero Engines
MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
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