Sigma Lithium (NASDAQ:SGML – Get Free Report) and ArcelorMittal (NYSE:MT – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Profitability
This table compares Sigma Lithium and ArcelorMittal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sigma Lithium | -19.36% | -37.40% | -7.66% |
| ArcelorMittal | 2.88% | 4.20% | 2.42% |
Risk & Volatility
Sigma Lithium has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sigma Lithium | 3 | 2 | 3 | 0 | 2.00 |
| ArcelorMittal | 0 | 7 | 8 | 0 | 2.53 |
Sigma Lithium currently has a consensus price target of $14.30, suggesting a potential upside of 82.63%. ArcelorMittal has a consensus price target of $74.55, suggesting a potential upside of 25.40%. Given Sigma Lithium’s higher probable upside, equities analysts clearly believe Sigma Lithium is more favorable than ArcelorMittal.
Earnings and Valuation
This table compares Sigma Lithium and ArcelorMittal”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sigma Lithium | $110.01 million | 8.02 | -$50.19 million | ($0.24) | -32.62 |
| ArcelorMittal | $61.35 billion | 0.75 | $3.15 billion | $2.36 | 25.19 |
ArcelorMittal has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.9% of Sigma Lithium shares are held by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by insiders. Comparatively, 0.1% of ArcelorMittal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
ArcelorMittal beats Sigma Lithium on 10 of the 14 factors compared between the two stocks.
About Sigma Lithium
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
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.
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