Analyzing Atlas Copco (ATLKY) & Its Peers

Atlas Copco (OTCMKTS:ATLKY) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare Atlas Copco to similar businesses based on the strength of its analyst recommendations, dividends, risk, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares Atlas Copco and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Copco	15.69%	24.52%	13.12%
Atlas Copco Competitors	-1,044.46%	-15.08%	0.55%

Dividends

Atlas Copco pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. Atlas Copco pays out 54.2% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend. Atlas Copco lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

0.0% of Atlas Copco shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are owned by institutional investors. 14.3% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Atlas Copco and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Copco	1	2	5	1	2.67
Atlas Copco Competitors	4191	14680	18173	803	2.41

As a group, “Machinery” companies have a potential upside of 31.26%. Given Atlas Copco’s rivals higher probable upside, analysts plainly believe Atlas Copco has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Atlas Copco and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Atlas Copco	$17.21 billion	$2.70 billion	31.39
Atlas Copco Competitors	$4.65 billion	$364.05 million	3.54

Atlas Copco has higher revenue and earnings than its rivals. Atlas Copco is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Atlas Copco has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Atlas Copco’s rivals have a beta of 5.11, indicating that their average stock price is 411% more volatile than the S&P 500.

Summary

Atlas Copco beats its rivals on 9 of the 15 factors compared.

Atlas Copco Company Profile

Atlas Copco AB provides compressed air and gas, vacuum, energy, dewatering and industrial pump, industrial power tool, and assembly and machine vision solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB was founded in 1873 and is headquartered in Nacka, Sweden.