Vale (NYSE:VALE) & Almonty Industries (NASDAQ:ALM) Head-To-Head Review

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

Institutional & Insider Ownership

21.9% of Vale shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Almonty Industries and Vale”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Almonty Industries	$23.27 million	162.94	-$115.88 million	$0.16	82.25
Vale	$41.24 billion	1.48	$2.35 billion	$0.49	27.41

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

Volatility and Risk

Almonty Industries has a beta of 3.75, suggesting that its share price is 275% more volatile than the S&P 500. Comparatively, Vale has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Almonty Industries and Vale, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Almonty Industries	0	2	5	1	2.88
Vale	1	12	2	1	2.19

Almonty Industries presently has a consensus target price of $24.21, indicating a potential upside of 83.95%. Vale has a consensus target price of $16.04, indicating a potential upside of 19.40%. Given Almonty Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe Almonty Industries is more favorable than Vale.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Almonty Industries	125.89%	9.19%	3.97%
Vale	5.11%	19.87%	8.58%

Summary

Almonty Industries beats Vale on 7 of the 13 factors compared between the two stocks.

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.

About Vale

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.