Ampco-Pittsburgh vs. NN: Which Industrial Stock Is the Better Buy?

Industrial manufacturers continue to navigate an operating environment influenced by changing end-market demand, supply-chain dynamics and evolving cost conditions. Against this backdrop, Ampco-Pittsburgh Corporation AP and NN, Inc. NNBR are two industrial companies with global manufacturing operations but distinct business models. AP manufactures highly engineered, high-performance specialty metal products and customized equipment through its Forged and Cast Engineered Products (FCEP) and Air and Liquid Processing (ALP) segments.

In contrast, NN is a diversified industrial company that combines engineering, production capabilities and materials science expertise to manufacture high-precision components and assemblies. Its operations are organized into Mobile Solutions and Power Solutions. Mobile Solutions focuses on the automotive, general industrial and medical markets, while Power Solutions serves electrical, general industrial, automotive and medical markets, with products also used in aerospace and defense applications.

While both companies operate in the industrial manufacturing space, differences in product specialization, end-market exposure and business mix create distinct competitive positions and risk profiles. These differences shape each company's operating profile and investment appeal. This raises a key question: which company is better positioned for investors today? Let's take a closer look.

Stock Performance & Valuation: AP vs. NNBR

AP (down 19.9%) has underperformed NNBR (up 15.7%) over the past three months. However, in the past year, Ampco-Pittsburgh has rallied 219.6% compared with NN’s gain of 38.4%.

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Meanwhile, AP is trading at a trailing 12-month enterprise value-to-sales (EV/S) ratio of 0.7X, above its median of 0.4X over the past five years. NNBR’s trailing 12-month EV/S multiple sits at 1.2X, above its last five-year median of 0.8X. AP and NNBR both appear to be cheap when compared with the Zacks Industrial Products sector’s average of 4.2X.

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Factors Driving Ampco-Pittsburgh’s Stock

Ampco-Pittsburgh’s FCEP business is seeing improving demand, particularly in North America. Tariff protections have reduced imports and supported higher U.S. steel-mill utilization, driving greater roll consumption. Meanwhile, supply rationalization and industry consolidation are tightening the competitive landscape and creating opportunities for additional business. Improving orders and backlog indicate that the recovery is gaining traction, supporting a stronger demand environment for FCEP.

ALP continues to benefit from healthy demand across specialized markets. Data-center expansion is supporting power-generation demand for commercial pumps and nuclear heat exchangers, while U.S. Navy programs remain another important growth avenue. Demand for custom air handlers also remains strong across pharmaceutical and healthcare applications. AP is adding equipment, headcount and capacity to capitalize on these opportunities.

AP’s exit from its underperforming U.K. cast-roll facility and divestiture of the non-core AUP distribution business have improved portfolio focus. The benefits of these actions are increasingly supporting operating performance, complemented by better manufacturing efficiency and productivity. The Sweden operation has also returned to profitability, reflecting improved utilization and execution. Together, these initiatives provide a stronger foundation for sustainable profitability and margin improvement.

Factors Driving NN Stock

NN’s 5-Pillar growth strategy is gaining momentum, led by data center, defense and medical markets. The company has secured meaningful new awards across these areas, with several programs expected to ramp through the second half of 2026 and into 2027. Capacity is also being expanded to support these wins. This progress is broadening NNBR’s revenue base and gradually reducing its reliance on automotive, which now accounts for about 40% of the business.

NN’s refinancing addresses a significant capital-structure overhang. The company retired a substantial portion of its preferred stock, converted another portion into common equity and reduced the rate on the remaining preferred balance. The transaction is expected to materially lower annual PIK (Payment-in-Kind) interest, providing greater flexibility to support growth initiatives and allowing more of the value created through operational improvements to accrue to common shareholders.

Cost reductions undertaken over the past several quarters are improving NN’s operating leverage as volumes increase. Better sales mix and disciplined execution are providing additional support, with recent results showing expansion in both gross and adjusted EBITDA margins. The combination of a leaner cost structure and improved manufacturing performance provides a stronger foundation for sustained profitability as production volumes scale.

Choose AP Over NNBR Now

Both Ampco-Pittsburgh and NN are showing improving business fundamentals, although their investment cases are driven by different factors. AP is benefiting from recovering conditions in FCEP, healthy demand across ALP end markets and operational improvements stemming from portfolio optimization. Together, these factors are strengthening the company's operating profile.

NN offers a compelling growth story, supported by new business wins across data centers, defense and medical markets. Upcoming production ramps are broadening its end-market exposure, while cost actions are supporting profitability. Its recent refinancing has also improved the capital structure and reduced a significant financial overhang.

From a valuation perspective, AP currently offers a more favorable risk-reward proposition. Both stocks remain inexpensive relative to the broader sector, but NN commands a noticeably higher valuation and trades further above its own historical norm. This suggests investors are already assigning greater value to NNBR's growth prospects. AP's comparatively lower valuation leaves more room for its ongoing operational recovery to translate into shareholder value if execution remains on track.

Considering their fundamental outlooks and relative valuations, Ampco-Pittsburgh emerges as the better buy at present. While NNBR offers an attractive growth story, AP provides a more compelling risk-reward proposition, supported by improving operating fundamentals and greater valuation appeal.

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This article originally published on Zacks Investment Research (zacks.com).

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