Algoma Steel Group (NASDAQ:ASTL – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
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. 7.8% of Algoma Steel Group shares are held by company insiders. Comparatively, 8.2% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
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 | -59.04% | -186.12% | -34.06% |
| MP Materials | -19.85% | -1.21% | -0.62% |
Risk and Volatility
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 and Valuation
This table compares Algoma Steel Group and MP Materials”s revenue, earnings per share 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 | ($4.95) | -0.96 |
| MP Materials | $224.44 million | 31.31 | -$85.87 million | ($0.34) | -116.06 |
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.
Analyst Ratings
This is a breakdown of current recommendations for Algoma Steel Group and MP Materials, as reported by MarketBeat.com.
| 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 |
MP Materials has a consensus target price of $71.92, indicating a potential upside of 82.25%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Algoma Steel Group.
Summary
MP Materials beats Algoma Steel Group on 12 of the 15 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.
Receive News & Ratings for Algoma Steel Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Algoma Steel Group and related companies with MarketBeat.com's FREE daily email newsletter.
