ATI (NYSE:ATI) vs. Carpenter Technology (NYSE:CRS) Critical Contrast

Carpenter Technology (NYSE:CRS) and ATI (NYSE:ATI) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares Carpenter Technology and ATI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carpenter Technology	$2.76 billion	5.18	$186.50 million	$7.06	40.66
ATI	$4.36 billion	3.02	$367.80 million	$2.76	33.84

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

Insider and Institutional Ownership

92.0% of Carpenter Technology shares are held by institutional investors. 2.9% of Carpenter Technology shares are held by insiders. Comparatively, 1.1% of ATI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Carpenter Technology and ATI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carpenter Technology	0	1	4	0	2.80
ATI	0	2	6	0	2.75

Carpenter Technology presently has a consensus target price of $278.33, indicating a potential downside of 3.04%. ATI has a consensus target price of $87.29, indicating a potential downside of 6.54%. Given Carpenter Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Carpenter Technology is more favorable than ATI.

Profitability

This table compares Carpenter Technology and ATI’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%
ATI	8.93%	21.37%	7.66%

Risk and Volatility

Carpenter Technology has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, ATI has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Carpenter Technology beats ATI on 10 of the 14 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 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.