Head-To-Head Comparison: Atlas Copco (ALFVY) versus Its Competitors

Atlas Copco (OTCMKTS: ALFVY) is one of 23 public companies in the “Special industry machinery, not elsewhere classified” industry, but how does it compare to its rivals? We will compare Atlas Copco to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Institutional and Insider Ownership

0.1% of Atlas Copco shares are owned by institutional investors. Comparatively, 47.1% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by institutional investors. 14.8% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by company 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 Atlas Copco and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Copco 11.16% 20.10% 8.01%
Atlas Copco Competitors -14.04% -0.29% -2.17%

Analyst Recommendations

This is a summary of recent ratings for Atlas Copco and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Copco 0 0 0 0 N/A
Atlas Copco Competitors 209 609 983 42 2.47

As a group, “Special industry machinery, not elsewhere classified” companies have a potential upside of 21.17%. Given Atlas Copco’s rivals higher probable upside, analysts plainly believe Atlas Copco has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Atlas Copco and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atlas Copco $4.68 billion $520.14 million 16.97
Atlas Copco Competitors $2.81 billion $321.12 million 0.64

Atlas Copco has higher revenue and earnings than its rivals. Atlas Copco is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Atlas Copco pays an annual dividend of $0.39 per share and has a dividend yield of 1.9%. Atlas Copco pays out 31.5% of its earnings in the form of a dividend. As a group, “Special industry machinery, not elsewhere classified” companies pay a dividend yield of 1.7% and pay out 26.6% of their earnings in the form of a dividend.

Risk and Volatility

Atlas Copco has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Atlas Copco’s rivals have a beta of 1.12, indicating that their average stock price is 12% more volatile than the S&P 500.

Summary

Atlas Copco beats its rivals on 7 of the 12 factors compared.

About Atlas Copco

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in five segments: Energy, Food & Water, Marine, Greenhouse, and Operations & Other. It offers fluid handling systems, such as automation and fluid control equipment; installation materials; analytical, cleaning validation, flow, level, pressure, temperature, and weighing instruments, as well as instrumentation accessories; mixing equipment; centrifugal, circumferential piston, rotary lobe, and screw pumps; rotary jet and spray heads; tank covers and accessories; and valves. The company also provides heat transfer products, including air heat exchangers; exhaust gas economizers, and oil/gas-fired composite steam and steam boilers; burners; oil/gas-fired hot water and thermal, and waste heat recovery heaters; plate and tubular heat exchangers; and scraped surface heat exchangers. In addition, it offers separation products comprising cylindrical filter baskets and filtering elements; decanters and separators; evaporation systems; filters and strainers; and membrane and pump control systems. Further, the company provides process solutions consisting of ballast water, brewery, bulk, desalination, edible oil, exhaust gas cleaning, filling, fresh water, fuel conditioning, marine exhaust gas, olive oil, protein, refrigeration, safety, and thermal solutions. It serves the biotech and pharmaceuticals, energy, chemicals,food, dairy, beverage, home and personal care, HVAC, machinery and manufacturing, marine and transportation, mining, minerals, pigment, pulp and paper, refrigeration, semiconductor and electronics, steel, and water and waste treatment industries. The company was formerly known as AB Separator and changed its name to Alfa Laval AB (publ) in 1963. Alfa Laval AB (publ) was founded in 1883 and is headquartered in Lund, Sweden.

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