Carpenter Technology (NYSE:CRS) and Voestalpine (OTCMKTS:VLPNY) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of recent recommendations for Carpenter Technology and Voestalpine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carpenter Technology	0	1	4	0	2.80
Voestalpine	0	2	0	0	2.00

Carpenter Technology presently has a consensus target price of $278.33, indicating a potential upside of 0.21%. Given Carpenter Technology’s stronger consensus rating and higher possible upside, equities analysts plainly believe Carpenter Technology is more favorable than Voestalpine.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carpenter Technology	12.26%	21.16%	10.85%
Voestalpine	0.99%	2.08%	0.99%

Dividends

Carpenter Technology pays an annual dividend of $0.80 per share and has a dividend yield of 0.3%. Voestalpine pays an annual dividend of $0.10 per share and has a dividend yield of 1.7%. Carpenter Technology pays out 11.3% of its earnings in the form of a dividend. Voestalpine pays out 50.0% 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 & Volatility

Carpenter Technology has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Voestalpine has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Valuation and Earnings

This table compares Carpenter Technology and Voestalpine”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carpenter Technology	$2.76 billion	5.01	$186.50 million	$7.06	39.34
Voestalpine	$16.90 billion	0.30	$164.90 million	$0.20	30.05

Carpenter Technology has higher earnings, but lower revenue than Voestalpine. Voestalpine is trading at a lower price-to-earnings ratio than Carpenter Technology, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.0% of Carpenter Technology shares are held by institutional investors. 2.9% of Carpenter Technology 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.

Summary

Carpenter Technology beats Voestalpine on 14 of the 16 factors compared between the two stocks.

About Carpenter Technology

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

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.