Algoma Steel Group (NASDAQ:ASTL – Get Rating) and United States Steel (NYSE:X – Get Rating) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Volatility and Risk
Algoma Steel Group has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, United States Steel has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
This table compares Algoma Steel Group and United States Steel’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Algoma Steel Group||N/A||N/A||$230,000.00||N/A||N/A|
|United States Steel||$20.28 billion||0.31||$4.17 billion||$17.27||1.40|
United States Steel has higher revenue and earnings than Algoma Steel Group.
Institutional & Insider Ownership
72.6% of United States Steel shares are owned by institutional investors. 1.2% of United States Steel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Algoma Steel Group and United States Steel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Algoma Steel Group||N/A||101.77%||30.93%|
|United States Steel||23.01%||54.02%||25.18%|
Algoma Steel Group pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. United States Steel pays out 1.2% of its earnings in the form of a dividend. United States Steel has raised its dividend for 1 consecutive years.
This is a summary of recent ratings and recommmendations for Algoma Steel Group and United States Steel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Algoma Steel Group||0||0||1||0||3.00|
|United States Steel||3||3||2||0||1.88|
Algoma Steel Group currently has a consensus target price of $17.00, suggesting a potential upside of 82.60%. United States Steel has a consensus target price of $31.75, suggesting a potential upside of 30.93%. Given Algoma Steel Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Algoma Steel Group is more favorable than United States Steel.
United States Steel beats Algoma Steel Group on 8 of the 14 factors compared between the two stocks.
About Algoma Steel Group (Get Rating)
Algoma Steel Group Inc. produces and sells steel products primarily in North America. It provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled, floor plate, and cut-to-length products for the automotive industry; 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 United States Steel (Get Rating)
United States Steel Corporation produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through four segments: North American Flat-Rolled (Flat-Rolled), Mini Mill, U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, strip mill plates, sheets, and tin mill products, as well as iron ore and coke. This segment serves customers in the service center, conversion, transportation, automotive, construction, container, appliance, and electrical markets. The Mini Mill segment provides hot-rolled, cold-rolled, and coated sheets and electrical products. This segment serves customers in the automotive, appliance, construction, container, transportation, and service center markets. The USSE segment provides slabs, strip mill plates, sheets, tin mill products, and spiral welded pipes. This segment serves customers in the construction, container, appliance and electrical, service center, conversion, oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing products, as well as standard and line pipe and mechanical tubing products primarily to customers in the oil, gas, and petrochemical markets. The company also engages in the real estate business. United States Steel Corporation was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.
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