Contrasting Constellium (NYSE:CSTM) & China Hongqiao Group (OTCMKTS:CHHQF)

China Hongqiao Group (OTCMKTS:CHHQF) and Constellium (NYSE:CSTM) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for China Hongqiao Group and Constellium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Hongqiao Group	1	0	0	0	1.00
Constellium	0	0	5	0	3.00

Constellium has a consensus target price of $25.40, suggesting a potential upside of 22.71%. Given Constellium’s stronger consensus rating and higher probable upside, analysts clearly believe Constellium is more favorable than China Hongqiao Group.

Institutional & Insider Ownership

92.6% of Constellium shares are owned by institutional investors. 1.5% of Constellium shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares China Hongqiao Group and Constellium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Hongqiao Group	N/A	N/A	N/A
Constellium	1.73%	15.68%	2.85%

Earnings and Valuation

This table compares China Hongqiao Group and Constellium’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Hongqiao Group	N/A	N/A	N/A	N/A	N/A
Constellium	$7.24 billion	0.41	$135.29 million	$0.90	23.00

Constellium has higher revenue and earnings than China Hongqiao Group.

Summary

Constellium beats China Hongqiao Group on 9 of the 9 factors compared between the two stocks.

About China Hongqiao Group

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia. The company's products include molten aluminum alloys, aluminum alloy ingots, aluminum busbars, aluminum alloy processing, and alumina products. It also engages in the research, development, manufacture, trading, and sale of bauxite; production and sale of electricity; port operation; trading of carbons, iron ores, and light alloy materials; railway design and construction; and provision of financial leasing and business advisory services. The company was founded in 1994 and is headquartered in Zouping, the People's Republic of China. China Hongqiao Group Limited operates as a subsidiary of China Hongqiao Holdings Limited.

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.