Algoma Steel Group (NASDAQ:ASTL – Get Free Report) and Cleveland-Cliffs (NYSE:CLF – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares Algoma Steel Group and Cleveland-Cliffs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Algoma Steel Group | $2.07 billion | 0.25 | -$62.28 million | ($2.23) | -2.23 |
| Cleveland-Cliffs | $19.19 billion | 0.28 | -$754.00 million | ($3.41) | -3.23 |
Volatility & Risk
Algoma Steel Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Institutional & Insider Ownership
72.0% of Algoma Steel Group shares are owned by institutional investors. Comparatively, 67.7% of Cleveland-Cliffs shares are owned by institutional investors. 1.8% of Cleveland-Cliffs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Algoma Steel Group and Cleveland-Cliffs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Algoma Steel Group | 0 | 3 | 0 | 0 | 2.00 |
| Cleveland-Cliffs | 1 | 4 | 3 | 0 | 2.25 |
Cleveland-Cliffs has a consensus target price of $10.96, indicating a potential downside of 0.52%. Given Cleveland-Cliffs’ stronger consensus rating and higher probable upside, analysts plainly believe Cleveland-Cliffs is more favorable than Algoma Steel Group.
Profitability
This table compares Algoma Steel Group and Cleveland-Cliffs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Algoma Steel Group | -13.51% | -22.24% | -10.20% |
| Cleveland-Cliffs | -9.03% | -17.97% | -6.03% |
Summary
Cleveland-Cliffs beats Algoma Steel Group on 10 of the 14 factors compared between the two stocks.
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.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.
Receive News & Ratings for Algoma Steel Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Algoma Steel Group and related companies with MarketBeat.com's FREE daily email newsletter.
