Head-To-Head Analysis: Mueller Industries (MLI) vs. Kaiser Aluminum (KALU)

Mueller Industries (NYSE: MLI) and Kaiser Aluminum (NASDAQ:KALU) 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 risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Earnings and Valuation

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This table compares Mueller Industries and Kaiser Aluminum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mueller Industries $2.27 billion 0.68 $85.59 million N/A N/A
Kaiser Aluminum $1.40 billion 1.26 $45.40 million $5.09 20.71

Mueller Industries has higher revenue and earnings than Kaiser Aluminum.

Risk & Volatility

Mueller Industries has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mueller Industries and Kaiser Aluminum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Industries 0 0 0 0 N/A
Kaiser Aluminum 1 5 0 0 1.83

Kaiser Aluminum has a consensus price target of $101.50, suggesting a potential downside of 3.69%. Given Kaiser Aluminum’s higher possible upside, analysts plainly believe Kaiser Aluminum is more favorable than Mueller Industries.

Institutional & Insider Ownership

93.4% of Mueller Industries shares are owned by institutional investors. 2.8% of Mueller Industries shares are owned by insiders. Comparatively, 3.0% of Kaiser Aluminum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Mueller Industries and Kaiser Aluminum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mueller Industries 3.78% 16.47% 6.62%
Kaiser Aluminum 3.25% 11.35% 6.27%

Dividends

Mueller Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Kaiser Aluminum pays an annual dividend of $2.20 per share and has a dividend yield of 2.1%. Kaiser Aluminum pays out 43.2% of its earnings in the form of a dividend. Mueller Industries has increased its dividend for 6 consecutive years.

Summary

Mueller Industries beats Kaiser Aluminum on 9 of the 14 factors compared between the two stocks.

About Mueller Industries

Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, Asia, and Mexico. Its Piping Systems segment manufactures copper tubes and fittings, plastic fittings, line sets, and related components for water distribution system, heating system, air-conditioning, and refrigeration applications, as well as drainage, waste, and vent systems. It also manufactures steel pipe nipples; and resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. This segment sells its products primarily to plumbing, refrigeration, and air-conditioning wholesalers; and hardware wholesalers and co-ops, building product retailers, and air-conditioning original equipment manufacturers (OEMs) through its sales offices and distribution centers, and agents. The company's Industrial Metals segment manufactures and sells brass, bronze, and copper alloy rods; cold-formed aluminum and copper products for automotive, military ordnance, aerospace, and general manufacturing industries; brass and aluminum forgings for automotive components, brass fittings, industrial machinery, valve bodies, gear blanks, and computer hardware; and brass, aluminum, and stainless steel valves, as well as fluid control systems and gas train assembles for compressed gas, pharmaceutical, construction, and gas appliance markets. Its Climate segment offers valves, protection devices, and brass fittings, as well as tubular assemblies and fabrications for various OEMs in the commercial heating, ventilation, and air-conditioning (HVAC) and refrigeration markets; components and accessories for the air-conditioning and refrigeration markets; and coaxial heat exchangers and twisted tubes for HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets. The company was founded in 1900 and is headquartered in Memphis, Tennessee.

About Kaiser Aluminum

Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The company offers rolled, extruded, and drawn aluminum products used principally for aerospace and defense, automotive, consumer durables, electronics, electrical, and machinery and equipment applications. Its aerospace and high strength products include heat treat plates and sheets, hard alloy extruded shapes, cold finish rods and bars, seamless drawn tubes, and billets for aerospace and defense industries. The company's automotive extrusions include extruded aluminum products for structural components, bumper systems, anti-lock braking systems, and drawn tubes for drive shafts in the automobile industry. Its 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. The company also offers extruded, drawn, and cast billet aluminum products for industrial end uses. It sells its products directly to customers through sales personnel located in the United States, Canada, 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 Foothill Ranch, California.

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