Critical Comparison: Constellium (CSTM) and Aqua Metals (AQMS)

Constellium (NYSE: CSTM) and Aqua Metals (NASDAQ:AQMS) are both small-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

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This is a summary of current recommendations for Constellium and Aqua Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellium 0 3 3 0 2.50
Aqua Metals 0 0 6 0 3.00

Constellium presently has a consensus price target of $14.60, indicating a potential upside of 34.56%. Aqua Metals has a consensus price target of $17.83, indicating a potential upside of 588.55%. Given Aqua Metals’ stronger consensus rating and higher possible upside, analysts clearly believe Aqua Metals is more favorable than Constellium.

Institutional & Insider Ownership

80.7% of Constellium shares are owned by institutional investors. Comparatively, 35.2% of Aqua Metals shares are owned by institutional investors. 18.1% of Aqua Metals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Constellium has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Aqua Metals has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Profitability

This table compares Constellium and Aqua Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Constellium -0.66% -5.81% -0.93%
Aqua Metals N/A -41.94% -33.00%

Earnings and Valuation

This table compares Constellium and Aqua Metals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Constellium $5.92 billion 0.19 -$35.03 million ($0.32) -33.91
Aqua Metals $2.09 million 35.55 -$26.58 million ($1.19) -2.18

Aqua Metals has lower revenue, but higher earnings than Constellium. Constellium is trading at a lower price-to-earnings ratio than Aqua Metals, indicating that it is currently the more affordable of the two stocks.

Summary

Aqua Metals beats Constellium on 7 of the 13 factors compared between the two stocks.

About Constellium

Constellium N.V. is a Netherlands-based company engaged in developing aluminum products for a range of markets and applications, including aerospace, automotive and packaging. The Company’s manufacturing facilities are located in the United States, Europe and China. It operates through three segments: Packaging & Automotive Rolled Product; Aerospace & Transportation, and Automotive Structures & Industry. Its products include can body stock, can end stock, auto body sheet, heat exchangers, specialty reflective sheet, aerospace plates and sheets, aerospace wingskins, plates for general engineering, sheets for transportation applications, soft alloys, hard alloys, large profiles and automotive structures. It offers services, such as pre-machining services, which includes surface machining, boring and drilling; aluminum recycling services to recycle aluminum from end-of-life aircraft, and advanced welding services.

About Aqua Metals

Aqua Metals, Inc. engages in the recycling of lead primarily in the United States. It produces and sells hard lead, lead compounds, and plastics. The company was founded in 2014 and is headquartered in Alameda, California.

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