Carpenter Technology (NYSE: TMST) and Timkensteel (NYSE:TMST) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Carpenter Technology pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Timkensteel does not pay a dividend. Carpenter Technology pays out 28.8% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Carpenter Technology and Timkensteel’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Carpenter Technology||$2.16 billion||1.24||$188.50 million||$2.50||22.70|
|Timkensteel||$1.33 billion||0.45||-$43.80 million||($1.00)||-13.41|
Carpenter Technology has higher revenue and earnings than Timkensteel. Timkensteel is trading at a lower price-to-earnings ratio than Carpenter Technology, indicating that it is currently the more affordable of the two stocks.
This table compares Carpenter Technology and Timkensteel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Carpenter Technology and Timkensteel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Carpenter Technology currently has a consensus target price of $55.00, indicating a potential downside of 3.07%. Timkensteel has a consensus target price of $18.00, indicating a potential upside of 34.23%. Given Timkensteel’s stronger consensus rating and higher probable upside, analysts clearly believe Timkensteel is more favorable than Carpenter Technology.
Insider & Institutional Ownership
94.9% of Carpenter Technology shares are owned by institutional investors. Comparatively, 75.8% of Timkensteel shares are owned by institutional investors. 4.5% of Carpenter Technology shares are owned by insiders. Comparatively, 8.2% of Timkensteel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Carpenter Technology has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Timkensteel has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.
Carpenter Technology beats Timkensteel on 11 of the 16 factors compared between the two stocks.
Carpenter Technology Company Profile
Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. It operates through two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels. It also manufactures and rents down-hole drilling tools and components for use in the oil and gas industry. The company serves aerospace and defense, energy, transportation, medical and industrial, and consumer industries. Carpenter Technology Corporation was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.
Timkensteel Company Profile
TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products worldwide. It offers carbon, micro-alloy, and alloy steel ingots, bars, tubes, and billets; and precision components, as well as thermal treatment and machining services. The company's products are used in oil country drill pipes; bits and collars; gears; hubs; axles; crankshafts and connecting rods; bearing races and rolling elements; bushings; fuel injectors; wind energy shafts; anti-friction bearings; and other applications. It sells its products and services to the oil and gas, oil country tubular goods, automotive, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. TimkenSteel Corporation is headquartered in Canton, Ohio.
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