Alcoa vs Century Aluminum Which Is More Promising?

Alcoa Corporation and Century Aluminum Company are two prominent players in the aluminum industry, each with their own unique strengths and weaknesses. Alcoa, a global leader in the production of aluminum products, has a diverse portfolio and strong market presence. On the other hand, Century Aluminum focuses specifically on the production of primary aluminum, with a more focused approach on the production process. Both companies have experienced fluctuations in their stock prices over recent years, making them interesting investment options for those looking to capitalize on the aluminum market.

Alcoa or Century Aluminum?

When comparing Alcoa and Century Aluminum, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alcoa and Century Aluminum.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alcoa has a dividend yield of 1.23%, while Century Aluminum has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alcoa reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.74%. On the other hand, Century Aluminum reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alcoa P/E ratio at -32.25 and Century Aluminum's P/E ratio at 5.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alcoa P/B ratio is 1.79 while Century Aluminum's P/B ratio is 2.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alcoa has seen a 5-year revenue growth of -0.18%, while Century Aluminum's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alcoa's ROE at -6.71% and Century Aluminum's ROE at 58.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.32 for Alcoa and $20.58 for Century Aluminum. Over the past year, Alcoa's prices ranged from $23.80 to $46.55, with a yearly change of 95.59%. Century Aluminum's prices fluctuated between $7.28 and $22.77, with a yearly change of 212.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.