Financial Analysis: Carpenter Technology (CRS) versus Its Peers

Carpenter Technology (NYSE:CRS) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Carpenter Technology to related businesses based on the strength of its dividends, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Carpenter Technology and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carpenter Technology	17.87%	27.50%	15.76%
Carpenter Technology Competitors	-278.26%	-46.47%	-4.05%

Risk and Volatility

Carpenter Technology has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Carpenter Technology’s peers have a beta of 1.32, suggesting that their average stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

92.0% of Carpenter Technology shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 2.9% of Carpenter Technology shares are owned by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Carpenter Technology and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carpenter Technology	0	3	6	0	2.67
Carpenter Technology Competitors	2152	8246	12738	579	2.50

Carpenter Technology currently has a consensus target price of $476.43, indicating a potential upside of 63.69%. As a group, “Aerospace & Defense” companies have a potential upside of 28.06%. Given Carpenter Technology’s stronger consensus rating and higher possible upside, equities analysts plainly believe Carpenter Technology is more favorable than its peers.

Dividends

Carpenter Technology pays an annual dividend of $0.80 per share and has a dividend yield of 0.3%. Carpenter Technology pays out 7.1% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.2% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Carpenter Technology and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Carpenter Technology	$3.19 billion	$529.80 million	25.67
Carpenter Technology Competitors	$8.43 billion	$569.54 million	24.95

Carpenter Technology’s peers have higher revenue and earnings than Carpenter Technology. Carpenter Technology 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

Carpenter Technology beats its peers on 10 of the 15 factors compared.

Carpenter Technology Company Profile

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.