Century Aluminum vs Alcoa Which Should You Buy?

Century Aluminum and Alcoa are two leading companies in the aluminum industry that have attracted the attention of investors looking to capitalize on the growing demand for aluminum products worldwide. Century Aluminum, a US-based producer of primary aluminum, has seen its stock price fluctuate alongside global economic trends and trade policies. On the other hand, Alcoa, a multinational corporation known for its integrated operations in the aluminum industry, has also garnered investor interest with its diverse portfolio and strategic acquisitions. Investors keen on gaining exposure to the aluminum market may find opportunities in both Century Aluminum and Alcoa stocks.

Century Aluminum or Alcoa?

When comparing Century Aluminum and Alcoa, 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 Century Aluminum and Alcoa.

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. Century Aluminum has a dividend yield of -%, while Alcoa has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Century Aluminum reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alcoa reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.74%.

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 Century Aluminum P/E ratio at 6.39 and Alcoa's P/E ratio at -32.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Century Aluminum P/B ratio is 3.15 while Alcoa's P/B ratio is 1.82.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.71 for Century Aluminum and $40.69 for Alcoa. Over the past year, Century Aluminum's prices ranged from $7.76 to $25.39, with a yearly change of 227.19%. Alcoa's prices fluctuated between $23.80 and $47.77, with a yearly change of 100.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.