Head-To-Head Analysis: BWX Technologies (NYSE:BWXT) versus ATI (NYSE:ATI)

BWX Technologies (NYSE:BWXT) and ATI (NYSE:ATI) are both large-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares BWX Technologies and ATI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.11%	30.83%	9.34%
ATI	10.09%	29.27%	10.59%

Earnings & Valuation

This table compares BWX Technologies and ATI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$3.51 billion	3.75	$328.95 million	$3.86	37.23
ATI	$4.59 billion	5.69	$404.30 million	$3.41	56.20

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

Volatility & Risk

BWX Technologies has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, ATI has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for BWX Technologies and ATI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	0	5	10	1	2.75
ATI	0	1	8	1	3.00

BWX Technologies currently has a consensus price target of $208.33, suggesting a potential upside of 44.95%. ATI has a consensus price target of $223.88, suggesting a potential upside of 16.83%. Given BWX Technologies’ higher possible upside, equities analysts clearly believe BWX Technologies is more favorable than ATI.

Insider and Institutional Ownership

94.4% of BWX Technologies shares are owned by institutional investors. 0.6% of BWX Technologies shares are owned by company insiders. Comparatively, 1.0% of ATI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ATI beats BWX Technologies on 8 of the 14 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

About ATI

ATI Inc. produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.