Comparing ArcelorMittal (NYSE:MT) & Sigma Lithium (NASDAQ:SGML)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ArcelorMittal	$61.35 billion	0.75	$3.15 billion	$2.36	25.19
Sigma Lithium	$110.01 million	8.02	-$50.19 million	($0.24)	-32.62

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.

Analyst Ratings

This is a breakdown of current ratings and target prices for ArcelorMittal and Sigma Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcelorMittal	0	7	8	0	2.53
Sigma Lithium	3	2	3	0	2.00

ArcelorMittal currently has a consensus price target of $74.55, indicating a potential upside of 25.40%. Sigma Lithium has a consensus price target of $14.30, indicating a potential upside of 82.63%. Given Sigma Lithium’s higher possible upside, analysts plainly believe Sigma Lithium is more favorable than ArcelorMittal.

Institutional & Insider Ownership

9.3% of ArcelorMittal shares are held by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 48.6% of Sigma Lithium shares are held by company insiders. 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.

Risk and Volatility

ArcelorMittal has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares ArcelorMittal and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ArcelorMittal	2.88%	4.20%	2.42%
Sigma Lithium	-19.36%	-37.40%	-7.66%

Summary

ArcelorMittal beats Sigma Lithium on 10 of the 14 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 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.