Comparing Atlas Copco (ALFVY) & Its Competitors

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

Insider and Institutional Ownership

0.1% of Atlas Copco shares are held by institutional investors. Comparatively, 46.9% of shares of all “Special industry machinery, not elsewhere classified” companies are held by institutional investors. 14.1% of shares of all “Special industry machinery, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Atlas Copco pays an annual dividend of $0.39 per share and has a dividend yield of 2.0%. 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 1.6% and pay out 29.5% of their earnings in the form of a dividend.

Profitability

This table compares Atlas Copco and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Copco 11.62% 20.64% 8.29%
Atlas Copco Competitors -14.10% -0.43% -2.25%

Analyst Ratings

This is a summary of recent recommendations for Atlas Copco and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Copco 0 0 1 0 3.00
Atlas Copco Competitors 218 623 1000 43 2.46

As a group, “Special industry machinery, not elsewhere classified” companies have a potential upside of 7.24%. Given Atlas Copco’s peers higher possible upside, analysts clearly believe Atlas Copco has less favorable growth aspects than its peers.

Volatility and Risk

Atlas Copco has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Atlas Copco’s peers have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Atlas Copco and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atlas Copco $4.68 billion $520.14 million 15.77
Atlas Copco Competitors $2.79 billion $327.95 million 0.71

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

Summary

Atlas Copco beats its peers on 9 of the 15 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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