Algoma Steel Group (NASDAQ:ASTL – Get Free Report) and Alamos Gold (NYSE:AGI – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Profitability
This table compares Algoma Steel Group and Alamos Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
| Alamos Gold | 52.64% | 19.28% | 13.47% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Algoma Steel Group and Alamos Gold, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
| Alamos Gold | 0 | 2 | 7 | 0 | 2.78 |
Institutional & Insider Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. Comparatively, 64.3% of Alamos Gold shares are held by institutional investors. 0.5% of Alamos Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Algoma Steel Group and Alamos Gold”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Algoma Steel Group | $1.49 billion | 0.30 | -$704.89 million | ($7.35) | -0.58 |
| Alamos Gold | $2.23 billion | 6.62 | $885.80 million | $2.77 | 12.72 |
Alamos Gold has higher revenue and earnings than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Algoma Steel Group has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Summary
Alamos Gold beats Algoma Steel Group on 12 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 Alamos Gold
Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada. The company also holds interest in the Quartz Mountain project located in the Oregon United states. Alamos Gold Inc. was founded in 2003 and is based in Toronto, Canada.
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