Critical Contrast: Almonty Industries (NASDAQ:ALM) & Dowa (OTCMKTS:DWMNF)

Dowa (OTCMKTS:DWMNF) and Almonty Industries (NASDAQ:ALM) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dowa and Almonty Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dowa	0	0	0	0	0.00
Almonty Industries	1	0	4	1	2.83

Almonty Industries has a consensus target price of $18.38, suggesting a potential downside of 6.54%. Given Almonty Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Almonty Industries is more favorable than Dowa.

Profitability

This table compares Dowa and Almonty Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dowa	N/A	N/A	N/A
Almonty Industries	-262.29%	-11.01%	-5.07%

Institutional & Insider Ownership

17.8% of Dowa shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Dowa and Almonty Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dowa	N/A	N/A	N/A	$80.34	0.77
Almonty Industries	$23.27 million	239.72	-$115.88 million	($0.50)	-39.32

Dowa has higher earnings, but lower revenue than Almonty Industries. Almonty Industries is trading at a lower price-to-earnings ratio than Dowa, indicating that it is currently the more affordable of the two stocks.

Summary

Dowa beats Almonty Industries on 6 of the 11 factors compared between the two stocks.

About Dowa

Dowa Holdings Co., Ltd. engages in the environmental management and recycling, nonferrous metals, electronic materials, metal processing, and heat treatment businesses worldwide. The company's Environmental Management & Recycling segment offers intermediate waste treatment, controlled landfilling, and soil remediation services; metal, household appliance, and automobile recycling services; consulting on environmental matters; and environmental logistics services. Its Nonferrous Metals segment produces and sells gold, silver, copper, lead, zinc, zinc alloys, indium, platinum, palladium, rhodium, tin, antimony, nickel sulfate, bismuth, tellurium, and sulfuric acid. The company's Electronic Materials segment offers high-purity materials, GaAs substrate wafers, and light-emitting diodes, as well as silver, copper, metal, carrier, and ferrite powders. Its Metal Processing segment provides copper, brass, copper and nickel alloy strips, reflow tin plated strips, brass rods, forged brass products, precious metal plating products, and metal-ceramics substrates. The company's Heat Treatment segment is involved in the design, manufacture, and maintenance of various types of industrial furnaces and ancillary equipment, as well as heat and surface treatment. The company also engages in real estate leasing, plant construction, civil engineering and construction work, office administration, technological development support, and other operations. The company was formerly known as Dowa Mining Co., Ltd. and changed its name to Dowa Holdings Co., Ltd. in October 2006. Dowa Holdings Co., Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.

About Almonty Industries

Almonty Industries Inc. is a producer of tungsten concentrate. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira Mine in Portugal. Almonty Industries Inc. is based in TORONTO.