Contrasting Alcoa (NYSE:AA) & Namib Minerals (NASDAQ:NAMM)

Namib Minerals (NASDAQ:NAMM) and Alcoa (NYSE:AA) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares Namib Minerals and Alcoa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	N/A
Alcoa	10.77%	24.58%	10.03%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Namib Minerals and Alcoa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	1	1	0	0	1.50
Alcoa	1	6	6	0	2.38

Alcoa has a consensus target price of $58.23, indicating a potential upside of 41.64%. Given Alcoa’s stronger consensus rating and higher probable upside, analysts clearly believe Alcoa is more favorable than Namib Minerals.

Earnings and Valuation

This table compares Namib Minerals and Alcoa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Namib Minerals	$82.60 million	0.51	$101.18 million	($0.96)	-0.81
Alcoa	$12.83 billion	0.85	$1.16 billion	$5.79	7.10

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

Institutional and Insider Ownership

59.5% of Namib Minerals shares are owned by institutional investors. 30.5% of Namib Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Namib Minerals has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Alcoa has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Summary

Alcoa beats Namib Minerals on 11 of the 13 factors compared between the two stocks.

About Namib Minerals

Namib Minerals Limited is a gold mining company focused on the exploration, development and production of gold. The company’s activities include operating and developing mining properties, processing gold-bearing ore and pursuing exploration opportunities intended to expand its mineral resource base. Namib Minerals’ operating portfolio is centered in Zimbabwe, where it has interests in gold-producing and development assets. Its business is supported by underground mining, mineral processing and exploration activities, with the company seeking to advance existing properties and identify additional opportunities in the region.

About Alcoa

Alcoa Corporation is an integrated aluminum company involved in bauxite mining, alumina refining and primary aluminum production. Its products include bauxite, alumina and aluminum in forms used by customers across industries such as transportation, packaging, construction and consumer goods. The company operates internationally, with activities spanning North America, South America, Europe and Australia. Its business connects raw-material production with refining and smelting, serving customers in markets around the world.