Atkore International Group (ATKR) vs. General Cable (BGC) Critical Contrast

Atkore International Group (NYSE: ATKR) and General Cable (NYSE:BGC) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares Atkore International Group and General Cable’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atkore International Group 5.63% 26.22% 7.73%
General Cable -4.71% 43.57% 2.85%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Atkore International Group and General Cable, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atkore International Group 0 0 3 0 3.00
General Cable 0 0 0 0 N/A

Atkore International Group presently has a consensus price target of $23.67, indicating a potential upside of 9.11%. Given Atkore International Group’s higher possible upside, analysts plainly believe Atkore International Group is more favorable than General Cable.

Earnings and Valuation

This table compares Atkore International Group and General Cable’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atkore International Group $1.50 billion 0.91 $84.63 million $1.26 17.21
General Cable $3.86 billion 0.39 -$93.80 million ($3.56) -8.31

Atkore International Group has higher earnings, but lower revenue than General Cable. General Cable is trading at a lower price-to-earnings ratio than Atkore International Group, indicating that it is currently the more affordable of the two stocks.

Dividends

General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Atkore International Group does not pay a dividend. General Cable pays out -20.2% of its earnings in the form of a dividend.

Risk & Volatility

Atkore International Group has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, General Cable has a beta of 2.88, meaning that its stock price is 188% more volatile than the S&P 500.

Institutional and Insider Ownership

98.3% of Atkore International Group shares are held by institutional investors. Comparatively, 99.8% of General Cable shares are held by institutional investors. 51.0% of Atkore International Group shares are held by company insiders. Comparatively, 1.8% of General Cable shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Atkore International Group beats General Cable on 9 of the 15 factors compared between the two stocks.

About Atkore International Group

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

About General Cable

General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.

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