Algoma Steel Group (NASDAQ:ASTL – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Profitability
This table compares Algoma Steel Group and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
| MP Materials | -19.85% | -1.21% | -0.62% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Algoma Steel Group and MP Materials, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
| MP Materials | 2 | 1 | 13 | 1 | 2.76 |
Institutional & Insider Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 8.2% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Algoma Steel Group has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.
Earnings & Valuation
This table compares Algoma Steel Group and MP Materials”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Algoma Steel Group | $1.49 billion | 0.34 | -$704.89 million | ($7.35) | -0.64 |
| MP Materials | $224.44 million | 30.40 | -$85.87 million | ($0.34) | -112.69 |
MP Materials has lower revenue, but higher earnings than Algoma Steel Group. MP Materials 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.
Summary
MP Materials beats Algoma Steel Group on 12 of the 14 factors compared between the two stocks.
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.
About MP Materials
MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
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