Yes, Alpha Ratings can be used to compare stocks across sectors as well as within a sector. Alpha Ratings provides both Ratings and Rank that are calculated across the market. These ratings are also updated every month. This makes them ideal for comparing stocks across sectors as well as within a sector.
Most ratings frameworks do not rationalise their ratings at a market-level. What this means is that a relatively good company in sector that has lots of competition but is still growing at a healthy pace, for example – IT, might get a poor rating compared to a stock in a segment which has very little competition, for example coal mining. Also, most other ratings frameworks are not transparent as to the purpose of rating -for example their rating could be based on creditworthiness rather than stock performance.
The primary purpose of the Alpha Ratings is to identify steady outperformers in the equity market. The ratings cover all listed instruments. The ratings framework is rational and consistent and not based on subjectivity or human opinions. They are also updated at the same time. Therefore, Alpha Ratings can be used to compare stocks across different industries and sectors.