Head-To-Head Comparison: Atlas Copco (OTCMKTS:ATLKY) vs. Luxfer (NYSE:LXFR)

Luxfer (NYSE:LXFR) and Atlas Copco (OTCMKTS:ATLKY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Dividends

Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 4.2%. Atlas Copco pays an annual dividend of $0.21 per share and has a dividend yield of 1.1%. Luxfer pays out 179.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atlas Copco pays out 38.2% of its earnings in the form of a dividend.

Profitability

This table compares Luxfer and Atlas Copco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luxfer	2.00%	11.61%	6.99%
Atlas Copco	15.70%	24.94%	13.21%

Insider & Institutional Ownership

90.8% of Luxfer shares are held by institutional investors. Comparatively, 0.0% of Atlas Copco shares are held by institutional investors. 1.2% of Luxfer shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Luxfer and Atlas Copco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	0.86	$7.70 million	$0.29	43.04
Atlas Copco	$17.21 billion	5.58	$2.70 billion	$0.55	35.81

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

Analyst Recommendations

This is a breakdown of recent ratings for Luxfer and Atlas Copco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	1	0	0	2.00
Atlas Copco	1	4	4	0	2.33

Risk and Volatility

Luxfer has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Atlas Copco has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Summary

Atlas Copco beats Luxfer on 11 of the 15 factors compared between the two stocks.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.

About Atlas Copco

Atlas Copco AB provides compressed air and gas, vacuum, energy, dewatering and industrial pump, industrial power tool, and assembly and machine vision solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB was founded in 1873 and is headquartered in Nacka, Sweden.