Kaiser Aluminum (NASDAQ:KALU – Get Free Report) and Aperam (OTCMKTS:APEMY – Get Free Report) are both mid-cap materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Kaiser Aluminum and Aperam, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaiser Aluminum | 1 | 1 | 3 | 1 | 2.67 |
| Aperam | 1 | 2 | 3 | 1 | 2.57 |
Kaiser Aluminum currently has a consensus target price of $167.25, suggesting a potential upside of 9.68%. Given Kaiser Aluminum’s stronger consensus rating and higher possible upside, equities analysts plainly believe Kaiser Aluminum is more favorable than Aperam.
Institutional & Insider Ownership
Dividends
Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.0%. Aperam pays an annual dividend of $1.96 per share and has a dividend yield of 3.8%. Kaiser Aluminum pays out 22.8% of its earnings in the form of a dividend. Aperam pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Kaiser Aluminum and Aperam’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaiser Aluminum | 5.49% | 24.71% | 7.86% |
| Aperam | 2.10% | 2.34% | 1.17% |
Volatility & Risk
Kaiser Aluminum has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Aperam has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Valuation & Earnings
This table compares Kaiser Aluminum and Aperam”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaiser Aluminum | $4.14 billion | 0.60 | $112.50 million | $13.49 | 11.30 |
| Aperam | $6.88 billion | 0.55 | $10.18 million | $2.02 | 25.37 |
Kaiser Aluminum has higher earnings, but lower revenue than Aperam. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Aperam, indicating that it is currently the more affordable of the two stocks.
Summary
Kaiser Aluminum beats Aperam on 12 of the 15 factors compared between the two stocks.
About Kaiser Aluminum
Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.
About Aperam
Aperam S.A., together with its subsidiaries, produces and sells stainless and specialty steel products worldwide. It operates through four segments: Stainless & Electrical Steel; Services & Solutions; Alloys & Specialties; and Recycling & Renewables. The company offers a range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the management of direct sales of stainless steel products from production facilities; distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. Further, it engages in the trading, processing, and recycling of raw materials, such as superalloys and titanium; provides Recyco, an electric arc furnace recycling facility that retrieves dust and sludge to recycle stainless steel raw materials and reduce waste; and produces wood and charcoal from cultivated eucalyptus forests. The company serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of steel service centers, transformation facilities, and sales offices. The company was incorporated in 2010 and is headquartered in Luxembourg, Luxembourg.
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