Aluminum Corporation of China Limited (ACH) & Alcoa Corp. (NYSE:AA) Critical Review

Aluminum Corporation of China Limited (NYSE: ACH) and Alcoa Corp. (NYSE:AA) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Aluminum Corporation of China Limited and Alcoa Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioEBITDAEarnings Per SharePrice/Earnings Ratio
Aluminum Corporation of China Limited$28.06 billion0.50$2.04 billion$0.03722.00
Alcoa Corp.$10.38 billion0.80$1.60 billionN/AN/A

Aluminum Corporation of China Limited has higher revenue and earnings than Alcoa Corp..

Institutional & Insider Ownership

0.3% of Aluminum Corporation of China Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Aluminum Corporation of China Limited and Alcoa Corp., as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Aluminum Corporation of China Limited00203.00
Alcoa Corp.031502.83

Alcoa Corp. has a consensus target price of $39.43, indicating a potential downside of 12.21%. Given Alcoa Corp.’s higher probable upside, analysts plainly believe Alcoa Corp. is more favorable than Aluminum Corporation of China Limited.

Profitability

This table compares Aluminum Corporation of China Limited and Alcoa Corp.’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Aluminum Corporation of China LimitedN/AN/AN/A
Alcoa Corp.1.63%3.29%1.60%

Summary

Alcoa Corp. beats Aluminum Corporation of China Limited on 6 of the 11 factors compared between the two stocks.

Aluminum Corporation of China Limited Company Profile

Aluminum Corporation of China Limited (Chalco) is an aluminum producer with operations in bauxite and coal mining, alumina refining and primary aluminum smelting. The Company operates through alumina segment, including the mining and purchasing of bauxite and other raw materials, and production and sale of alumina, as well as alumina-related products; primary aluminum segment includes the procurement of alumina, other raw materials, supplemental materials and electricity power, the production and sale of primary aluminum and aluminum-related products; trading segment is engaged in the trading of alumina, primary aluminum, other non-ferrous metal products, and crude fuels; energy segment includes coal mining and power generation, including conventional coal-fire power generation and renewable energy generation, such as wind power and photovoltaic power, and corporate and other operating segment includes corporate and other aluminum-related research, development, and other activities.

Alcoa Corp. Company Profile

Alcoa Corporation, formerly Alcoa Upstream Corporation, is engaged in the production of bauxite, alumina and aluminum of various cast and rolled products. The Company is engaged in the production and management of aluminum and alumina combined through its participation in various aspects of the industry, such as technology, mining, refining, smelting, and recycling. The Company’s segments include Bauxite, Alumina, Aluminum, Cast Products, Energy and Rolled Products. The Company’s Bauxite segment represents its global portfolio of bauxite mining assets. The Company’s Alumina segment represents its refining system across the world, and processes bauxite into alumina and sells it directly to internal and external smelter customers across the world. The Company’s Aluminum segment represents its smelter system across the world. Its Energy segment represents its portfolio of energy assets, with power production capacity of approximately 1,685 megawatts.

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