Comparing ArcelorMittal (NYSE:MT) & REalloys (NASDAQ:ALOY)

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

Analyst Recommendations

This is a breakdown of current recommendations for ArcelorMittal and REalloys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcelorMittal	0	7	5	0	2.42
REalloys	1	0	1	1	2.67

ArcelorMittal presently has a consensus price target of $74.80, indicating a potential upside of 15.93%. REalloys has a consensus price target of $16.00, indicating a potential upside of 97.29%. Given REalloys’ stronger consensus rating and higher probable upside, analysts plainly believe REalloys is more favorable than ArcelorMittal.

Risk & Volatility

ArcelorMittal has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, REalloys has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares ArcelorMittal and REalloys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArcelorMittal	$61.35 billion	0.82	$3.15 billion	$2.36	27.34
REalloys	$2.43 million	231.69	-$4.43 million	($3.16)	-2.57

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

Profitability

This table compares ArcelorMittal and REalloys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArcelorMittal	2.88%	4.20%	2.42%
REalloys	-5,145.12%	-192.93%	-163.20%

Insider & Institutional Ownership

9.3% of ArcelorMittal shares are owned by institutional investors. Comparatively, 3.6% of REalloys shares are owned by institutional investors. 0.1% of ArcelorMittal shares are owned by insiders. Comparatively, 20.1% of REalloys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ArcelorMittal beats REalloys on 10 of the 15 factors compared between the two stocks.

About ArcelorMittal

ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company also provides mining products, such as iron ore lumps, fines, concentrates, pellets, and sinter feeds; and coking coal. It sells its products to various customers in the automotive, appliance, engineering, construction, energy, and machinery industries through a centralized marketing organization, as well as distributors. The company has iron ore mining activities in Brazil, Bosnia, Canada, Liberia, Mexico, South Africa, and Ukraine. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.

About REalloys

REalloys Inc. operates as a rare earth metals and permanent magnet company in North America. The company produces rare earth metals, such as neodymium, praseodymium, dysprosium, terbium, samarium, gadolinium, yttrium, and scandium; and magnets, such as NdFeB Magnets, SmFe12 Magnets, and MnBi Magnets. The company was founded in 2024 and is headquartered in Euclid, Ohio.