SSAB (OTCMKTS:SSAAY) versus Algoma Steel Group (NASDAQ:ASTL) Head-To-Head Contrast

SSAB (OTCMKTS:SSAAY) and Algoma Steel Group (NASDAQ:ASTL) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares SSAB and Algoma Steel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SSAB	4.62%	6.66%	4.33%
Algoma Steel Group	-13.51%	-22.24%	-10.20%

Dividends

SSAB pays an annual dividend of $0.09 per share and has a dividend yield of 3.1%. Algoma Steel Group pays an annual dividend of $0.20 per share and has a dividend yield of 4.1%. SSAB pays out 40.9% of its earnings in the form of a dividend. Algoma Steel Group pays out -9.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Algoma Steel Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares SSAB and Algoma Steel Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SSAB	$9.78 billion	0.58	$617.08 million	$0.22	13.05
Algoma Steel Group	$2.07 billion	0.25	-$62.28 million	($2.23)	-2.18

SSAB has higher revenue and earnings than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than SSAB, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SSAB and Algoma Steel Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SSAB	0	2	0	0	2.00
Algoma Steel Group	0	3	0	0	2.00

Volatility and Risk

SSAB has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

72.0% of Algoma Steel Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

SSAB beats Algoma Steel Group on 8 of the 12 factors compared between the two stocks.

About SSAB

SSAB AB (publ) produces and sells steel products in Sweden, Finland, Rest of Europe, the United States, and internationally. It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The SSAB Special Steels segment offers quenched and tempered steels, and advanced high-strength steel products for steel and plate production. The SSAB Europe segment provides strip, heavy plate, and tubular products. The SSAB Americas segment sells heavy plates for steel and plate production. The Tibnor segment distributes a range of steel and non-ferrous metals in the Nordics and Baltics. The Ruukki Construction segment produces and sells energy-efficient building and construction solutions. It markets its steel products under the Strenx, Hardox, Docol, GreenCoat, Toolox, Armox, Duroxite, SSAB AM, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, SSAB Weathering, Cor-Ten, and SSAB Multisteel brands. The company's products are used by customers in the heavy transport, construction and infrastructure, industrial applications, construction machinery, energy, and material handling markets. SSAB AB (publ) was founded in 1878 and is headquartered in Stockholm, Sweden.

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.