Analyzing Constellium (CSTM) and The Competition

Constellium (NYSE:CSTM) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its competitors? We will compare Constellium to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

92.6% of Constellium shares are owned by institutional investors. Comparatively, 16.2% of shares of all “Metals & Mining” companies are owned by institutional investors. 1.2% of Constellium shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Constellium and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellium	0	3	5	0	2.62
Constellium Competitors	6404	22600	32300	1796	2.47

Constellium currently has a consensus target price of $33.29, indicating a potential upside of 51.08%. As a group, “Metals & Mining” companies have a potential upside of 28.07%. Given Constellium’s stronger consensus rating and higher possible upside, equities analysts plainly believe Constellium is more favorable than its competitors.

Profitability

This table compares Constellium and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellium	5.73%	49.04%	9.96%
Constellium Competitors	-1,168,050,136,845,918,000.00%	-53.17%	-2.08%

Earnings and Valuation

This table compares Constellium and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Constellium	$8.45 billion	$273.00 million	5.37
Constellium Competitors	$174.75 billion	$278.94 million	-45.14

Constellium’s competitors have higher revenue and earnings than Constellium. Constellium is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Constellium has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Constellium’s competitors have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Summary

Constellium beats its competitors on 9 of the 13 factors compared.

About Constellium

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.