Century Aluminum (NASDAQ:CENX – Get Free Report) and Constellium (NYSE:CSTM – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
Century Aluminum has a beta of 2.69, meaning that its share price is 169% more volatile than the S&P 500. Comparatively, Constellium has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Profitability
This table compares Century Aluminum and Constellium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Century Aluminum | -4.49% | -14.43% | -3.91% |
| Constellium | 2.64% | 28.20% | 4.33% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Century Aluminum | 1 | 1 | 0 | 0 | 1.50 |
| Constellium | 0 | 0 | 4 | 0 | 3.00 |
Century Aluminum currently has a consensus price target of $7.50, suggesting a potential upside of 13.98%. Constellium has a consensus price target of $21.60, suggesting a potential upside of 28.84%. Given Constellium’s stronger consensus rating and higher probable upside, analysts plainly believe Constellium is more favorable than Century Aluminum.
Insider and Institutional Ownership
53.9% of Century Aluminum shares are owned by institutional investors. 0.8% of Century Aluminum shares are owned by company insiders. Comparatively, 1.5% of Constellium shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Century Aluminum and Constellium’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Century Aluminum | $2.30 billion | 0.26 | -$14.10 million | ($1.16) | -5.67 |
| Constellium | $7.77 billion | 0.31 | $317.13 million | $1.47 | 11.40 |
Constellium has higher revenue and earnings than Century Aluminum. Century Aluminum is trading at a lower price-to-earnings ratio than Constellium, indicating that it is currently the more affordable of the two stocks.
Summary
Constellium beats Century Aluminum on 12 of the 14 factors compared between the two stocks.
About Century Aluminum
Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland. It also owns and operates a carbon anode production facility in the Netherlands. Century Aluminum Company was founded in 1995 and is headquartered in Chicago, Illinois.
About Constellium
Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the packaging, aerospace, automotive, other transportation and industrial end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. It also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded products and technologically advanced structures for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. Constellium SE was incorporated in 2010 and is headquartered in Paris, France.
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