Ampco-Pittsburgh (NYSE: AP) and Global Brass and Copper (NYSE:BRSS) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
This table compares Ampco-Pittsburgh and Global Brass and Copper’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Brass and Copper||3.26%||46.79%||9.61%|
Volatility & Risk
Ampco-Pittsburgh has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Global Brass and Copper has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Earnings & Valuation
This table compares Ampco-Pittsburgh and Global Brass and Copper’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ampco-Pittsburgh||$432.40 million||0.28||-$12.10 million||($0.99)||-9.95|
|Global Brass and Copper||$1.56 billion||0.47||$50.90 million||$2.30||14.57|
Global Brass and Copper has higher revenue and earnings than Ampco-Pittsburgh. Ampco-Pittsburgh is trading at a lower price-to-earnings ratio than Global Brass and Copper, indicating that it is currently the more affordable of the two stocks.
Ampco-Pittsburgh pays an annual dividend of $0.09 per share and has a dividend yield of 0.9%. Global Brass and Copper pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Ampco-Pittsburgh pays out -9.1% of its earnings in the form of a dividend. Global Brass and Copper pays out 10.4% 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. Ampco-Pittsburgh is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
56.3% of Ampco-Pittsburgh shares are held by institutional investors. Comparatively, 95.6% of Global Brass and Copper shares are held by institutional investors. 29.9% of Ampco-Pittsburgh shares are held by insiders. Comparatively, 3.2% of Global Brass and Copper shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Ampco-Pittsburgh and Global Brass and Copper, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Brass and Copper||0||0||0||0||N/A|
Ampco-Pittsburgh presently has a consensus target price of $22.00, indicating a potential upside of 123.35%. Given Ampco-Pittsburgh’s higher possible upside, research analysts clearly believe Ampco-Pittsburgh is more favorable than Global Brass and Copper.
Global Brass and Copper beats Ampco-Pittsburgh on 8 of the 14 factors compared between the two stocks.
Ampco-Pittsburgh Corporation is engaged in manufacturing and selling specialty metal products and customized equipment utilized by industry throughout the world. The Company operates through two segments: the Forged and Cast Engineered Products segment, and the Air and Liquid Processing segment. The Forged and Cast Engineered Products segment consists of Union Electric Steel Corporation (Union Electric Steel or UES) and Union Electric Steel UK Limited (UES-UK). The Air and Liquid Processing segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid Systems Corporation (Air and Liquid), a subsidiary of the Company. Union Electric Steel produces ingot and forged products that service a range of industries across the globe. UES-UK produces cast rolls for hot and cold strip mills, medium/heavy section mills and plate mills in a range of iron and steel qualities.
About Global Brass and Copper
Global Brass and Copper Holdings, Inc. is a converter, fabricator, processor and distributor of specialized non-ferrous products, including a range of sheet, strip, foil, rod, tube and fabricated metal component products. The Company operates through three segments: Olin Brass, Chase Brass and A.J. Oster. Its Olin Brass segment is engaged in manufacturing, fabricating and converting specialized copper and brass sheet, strip, foil, tube and fabricated products. The Chase Brass segment is engaged in manufacturing brass rod, including round, hexagonal and other shapes. The A.J. Oster segment is engaged in processing and distributing copper and copper-alloy sheet, strip and foil, operating six service centers in the United States, Puerto Rico and Mexico. Its products are used in a range of applications across markets, including the building and housing, munitions, automotive, transportation, coinage, industrial machinery and equipment, and general consumer end markets.
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