Metallus (NYSE:MTUS – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
77.6% of Metallus shares are held by institutional investors. Comparatively, 72.0% of Algoma Steel Group shares are held by institutional investors. 3.7% of Metallus shares are held by company insiders. Comparatively, 7.8% of Algoma Steel Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Metallus and Algoma Steel Group, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Metallus | 0 | 0 | 0 | 0 | N/A |
Algoma Steel Group | 0 | 0 | 1 | 0 | 3.00 |
Profitability
This table compares Metallus and Algoma Steel Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Metallus | 5.81% | 13.06% | 8.19% |
Algoma Steel Group | 3.81% | 7.01% | 4.00% |
Volatility and Risk
Metallus has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
Earnings and Valuation
This table compares Metallus and Algoma Steel Group’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Metallus | $1.36 billion | 0.73 | $69.40 million | $1.68 | 13.43 |
Algoma Steel Group | $2.07 billion | 0.45 | $77.99 million | $0.31 | 28.61 |
Algoma Steel Group has higher revenue and earnings than Metallus. Metallus is trading at a lower price-to-earnings ratio than Algoma Steel Group, indicating that it is currently the more affordable of the two stocks.
About Metallus
Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.
About Algoma Steel Group
Algoma Steel Group Inc. produces and sells steel products primarily in North America. The company provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural product manufacturers, and the light manufacturing and transportation industries; and plate steel products that consist of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, and military applications. Algoma Steel Group Inc. was founded in 1901 and is headquartered in Sault Ste. Marie, Canada.
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