Constellium (NYSE:CSTM – Get Free Report) and Silver Standard Resources (NASDAQ:SSRM – Get Free Report) are both mid-cap materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Insider and Institutional Ownership
92.6% of Constellium shares are owned by institutional investors. Comparatively, 68.3% of Silver Standard Resources shares are owned by institutional investors. 1.2% of Constellium shares are owned by company insiders. Comparatively, 0.8% of Silver Standard Resources shares are owned by company 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.
Risk & Volatility
Constellium has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Silver Standard Resources has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Constellium | 0 | 2 | 4 | 1 | 2.86 |
| Silver Standard Resources | 0 | 2 | 8 | 1 | 2.91 |
Constellium presently has a consensus price target of $35.60, indicating a potential upside of 39.50%. Silver Standard Resources has a consensus price target of $42.80, indicating a potential upside of 24.85%. Given Constellium’s higher possible upside, analysts plainly believe Constellium is more favorable than Silver Standard Resources.
Profitability
This table compares Constellium and Silver Standard Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Constellium | 5.69% | 51.66% | 9.63% |
| Silver Standard Resources | 12.30% | 16.17% | 11.84% |
Earnings and Valuation
This table compares Constellium and Silver Standard Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Constellium | $9.58 billion | 0.36 | $273.00 million | $3.88 | 6.58 |
| Silver Standard Resources | $1.63 billion | 4.24 | $395.75 million | $1.10 | 31.16 |
Silver Standard Resources has lower revenue, but higher earnings than Constellium. Constellium is trading at a lower price-to-earnings ratio than Silver Standard Resources, indicating that it is currently the more affordable of the two stocks.
About Constellium
Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.
About Silver Standard Resources
SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.
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