Alcoa vs West Which Is More Promising?

Alcoa Corporation and WestRock Company are two major players in the industrial sector, each offering investors unique opportunities for growth and diversification. Alcoa, a leading producer of aluminum, has a strong track record of innovation and market leadership, while WestRock specializes in packaging solutions and sustainable materials. Both companies have faced challenges in the past, but their resilient business models and commitment to sustainability make them attractive long-term investment options for those seeking exposure to the industrial sector.

Alcoa or West?

When comparing Alcoa and West, 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 West.

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 0.97%, while West has a dividend yield of 3.81%. 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, West reports a 5-year dividend growth of 9.46% 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 -32.65 and West's P/E ratio at 10.34. 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 1.82 while West's P/B ratio is 2.14.

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 West's is -0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alcoa's ROE at -6.71% and West's ROE at 22.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.69 for Alcoa and ¥1691.00 for West. Over the past year, Alcoa's prices ranged from $23.80 to $47.77, with a yearly change of 100.71%. West's prices fluctuated between ¥1691.00 and ¥3580.00, with a yearly change of 111.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.