Algoma Steel Group (NASDAQ:ASTL) & Namib Minerals (NASDAQ:NAMM) Head to Head Analysis
by Jessica Moore · The Cerbat GemNamib Minerals (NASDAQ:NAMM – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both small-cap materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Namib Minerals and Algoma Steel Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Namib Minerals | 1 | 1 | 0 | 0 | 1.50 |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
Insider & Institutional Ownership
59.5% of Namib Minerals shares are owned by institutional investors. Comparatively, 72.0% of Algoma Steel Group shares are owned by institutional investors. 30.5% of Namib Minerals shares are owned by insiders. Comparatively, 7.8% of Algoma Steel Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Namib Minerals and Algoma Steel Group’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 |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
Valuation and Earnings
This table compares Namib Minerals and Algoma Steel Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Namib Minerals | $82.60 million | 0.88 | $101.18 million | ($0.96) | -1.40 |
| Algoma Steel Group | $1.49 billion | 0.30 | -$704.89 million | ($7.35) | -0.58 |
Namib Minerals has higher earnings, but lower revenue than Algoma Steel Group. Namib Minerals 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.
Volatility and Risk
Namib Minerals has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.
Summary
Namib Minerals beats Algoma Steel Group on 7 of the 12 factors compared between the two stocks.
About Namib Minerals
Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.
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.