Financial Contrast: GrafTech International (NYSE:EAF) vs. Atkore (NYSE:ATKR)

Atkore (NYSE:ATKR) and GrafTech International (NYSE:EAF) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Dividends

Atkore pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. GrafTech International pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Atkore pays out -27.4% of its earnings in the form of a dividend. GrafTech International pays out -0.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Atkore has increased its dividend for 1 consecutive years. Atkore is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Atkore and GrafTech International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atkore	1	4	0	1	2.17
GrafTech International	2	4	0	0	1.67

Atkore currently has a consensus target price of $143.33, indicating a potential upside of 50.93%. GrafTech International has a consensus target price of $10.00, indicating a potential upside of 18.46%. Given Atkore’s stronger consensus rating and higher possible upside, research analysts clearly believe Atkore is more favorable than GrafTech International.

Volatility and Risk

Atkore has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, GrafTech International has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Insider and Institutional Ownership

92.8% of GrafTech International shares are held by institutional investors. 2.1% of Atkore shares are held by company insiders. Comparatively, 1.2% of GrafTech International shares are held 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.

Profitability

This table compares Atkore and GrafTech International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atkore	-5.55%	10.27%	4.90%
GrafTech International	-34.58%	N/A	-17.50%

Earnings & Valuation

This table compares Atkore and GrafTech International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atkore	$2.85 billion	1.13	-$15.18 million	($4.81)	-19.74
GrafTech International	$512.92 million	0.43	-$219.84 million	($6.80)	-1.24

Atkore has higher revenue and earnings than GrafTech International. Atkore is trading at a lower price-to-earnings ratio than GrafTech International, indicating that it is currently the more affordable of the two stocks.

Summary

Atkore beats GrafTech International on 14 of the 17 factors compared between the two stocks.

About Atkore

Atkore Inc. engages in the manufacture and sale of electrical, mechanical, safety, and infrastructure products and solutions in the United States and internationally. The company offers conduits, cables, and installation accessories. It also designs and manufactures protection and reliability solutions for critical infrastructure, such as metal framing, mechanical pipe, perimeter security, and cable management. The company offers its products under the Allied Tube & Conduit, AFC Cable Systems, Kaf-Tech, Heritage Plastics, Unistrut, Power-Strut, Cope, US Tray, FRE Composites, United Poly Systems, Calbond, and Calpipe. It serves various end markets, including new construction; maintenance, repair, and remodel; infrastructure; diversified industrials; alternative power generation; healthcare; data centers; and governments through electrical, industrial, and mechanical contractors, as well as original equipment manufacturers. The company was formerly known as Atkore International Group Inc. and changed its name to Atkore Inc. in February 2021. Atkore Inc. was founded in 1959 and is headquartered in Harvey, Illinois.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.