Critical Review: Metallus (NYSE:MTUS) versus Algoma Steel Group (NASDAQ:ASTL)

Metallus (NYSE:MTUS) and Algoma Steel Group (NASDAQ:ASTL) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Metallus and Algoma Steel Group, as provided by MarketBeat.com.

	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

Earnings & Valuation

This table compares Metallus and Algoma Steel Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallus	$1.36 billion	0.56	$69.40 million	$1.68	10.33
Algoma Steel Group	$2.80 billion	0.34	$77.99 million	$0.31	29.23

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.

Risk and Volatility

Metallus has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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%

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.