L.B. Foster (NASDAQ:FSTR) and Algoma Steel Group (NASDAQ:ASTL) Head-To-Head Comparison
by Jessica Moore · The Cerbat GemL.B. Foster (NASDAQ:FSTR – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Institutional & Insider Ownership
80.6% of L.B. Foster shares are held by institutional investors. Comparatively, 72.0% of Algoma Steel Group shares are held by institutional investors. 4.7% of L.B. Foster shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for L.B. Foster and Algoma Steel Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| L.B. Foster | 1 | 2 | 1 | 0 | 2.00 |
| Algoma Steel Group | 1 | 4 | 0 | 0 | 1.80 |
L.B. Foster presently has a consensus target price of $25.00, suggesting a potential downside of 14.30%. Given L.B. Foster’s stronger consensus rating and higher possible upside, equities analysts plainly believe L.B. Foster is more favorable than Algoma Steel Group.
Risk & Volatility
L.B. Foster has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Algoma Steel Group has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Valuation & Earnings
This table compares L.B. Foster and Algoma Steel Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| L.B. Foster | $530.77 million | 0.57 | $42.95 million | $0.45 | 64.82 |
| Algoma Steel Group | $2.07 billion | 0.22 | -$62.28 million | ($4.75) | -0.92 |
L.B. Foster has higher earnings, but lower revenue than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than L.B. Foster, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares L.B. Foster and Algoma Steel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| L.B. Foster | 0.96% | 2.79% | 1.44% |
| Algoma Steel Group | -31.27% | -15.13% | -6.51% |
Summary
L.B. Foster beats Algoma Steel Group on 12 of the 14 factors compared between the two stocks.
About L.B. Foster
L.B. Foster Company provides engineered and manufactured products and services for the building and infrastructure projects in the United States, Canada, the United Kingdom, and internationally. It operates through two segments: Rail, Technologies, and Services; and Infrastructure Solutions. The Rail, Technologies, and Services segment offers new rail to passenger and short line freight railroads, industrial companies, and rail contractors, as well as used rails; rail accessories, such as rack spikes, bolts, angle bars, tie plates, and other products; insulated rail joints and related accessories; fixation fasteners, coverboards, and special accessories; and trackwork products. This segment also provides engineered concrete railroad ties, friction management products and application systems, railroad condition monitoring systems and equipment including wheel impact load detection systems, wayside data collection and management systems, and rockfall, flood, earthworks, and bridge strike monitoring; and aftermarket services. The Infrastructure Solutions segment manufactures precast concrete products for use as restrooms, concession stands, and protective storage buildings under the CXT brand for national, state, and municipal parks; and manufactures sounds walls, bridge beams, box culverts, septic tanks, and other custom pre-stressed and precast concrete products. This segment also provides steel bridge products; corrosion protection solutions; concrete-reinforced steel grid decking, open steel grid deck, aluminum bridge railing, and stay-in-place steel bridge forms; cuts, threads, and paints pipe; threading services for water well applications; protective pipeline coating services; and turnkey solutions for metering and injection systems for oil and gas markets. L.B. Foster Company was founded in 1902 and is headquartered in Pittsburgh, Pennsylvania.
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.