Noranda Aluminum (OTCMKTS: NORNQ) and Aluminum Corp. of China (NYSE:ACH) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
0.4% of Aluminum Corp. of China shares are owned by institutional investors. 3.6% of Noranda Aluminum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Noranda Aluminum and Aluminum Corp. of China’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aluminum Corp. of China||N/A||N/A||N/A|
Earnings & Valuation
This table compares Noranda Aluminum and Aluminum Corp. of China’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Noranda Aluminum||$1.23 billion||0.00||-$259.60 million||($25.96)||0.00|
|Aluminum Corp. of China||$21.69 billion||0.51||$57.97 million||$0.25||74.36|
Aluminum Corp. of China has higher revenue and earnings than Noranda Aluminum. Noranda Aluminum is trading at a lower price-to-earnings ratio than Aluminum Corp. of China, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Noranda Aluminum has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Aluminum Corp. of China has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Noranda Aluminum and Aluminum Corp. of China, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aluminum Corp. of China||0||2||2||0||2.50|
Aluminum Corp. of China beats Noranda Aluminum on 7 of the 9 factors compared between the two stocks.
About Noranda Aluminum
Noranda Aluminum Holding Corporation is a producer of primary aluminum, alumina, bauxite and rolled aluminum coils. The Company produces aluminum products in a range of forms, such as billet, rod, sow and foundry. The Company operates through five segments: Bauxite, Alumina, Primary Aluminum, Flat-Rolled Products and Corporate. The Company has two businesses: Upstream Business and Downstream Business. Its Upstream Business consists of three segments: Primary Aluminum, Alumina and Bauxite. The Primary segment consists of a smelter near New Madrid, Missouri (New Madrid). The Alumina segment consists of an alumina refinery near Gramercy, Louisiana (Gramercy). The Bauxite segment consists of a bauxite mining operation (St. Ann). Its Downstream Business consists of its Flat-Rolled Products segment, which is an aluminum foil producer in North America, and consists of approximately four rolling mills at approximately three facilities.
About Aluminum Corp. of China
Aluminum Corporation of China Limited (Chalco) is an aluminum producer with operations in bauxite and coal mining, alumina refining and primary aluminum smelting. The Company operates through alumina segment, including the mining and purchasing of bauxite and other raw materials, and production and sale of alumina, as well as alumina-related products; primary aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electricity power, the production and sale of primary aluminum and aluminum-related products; trading segment is engaged in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels; energy segment includes coal mining and power generation, including conventional coal-fire power generation and renewable energy generation, such as wind power and photovoltaic power, and corporate and other operating segment includes corporate and other aluminum-related research, development, and other activities.
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