MP Materials (NYSE:MP – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for MP Materials and Algoma Steel Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 2 | 1 | 13 | 1 | 2.76 |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
MP Materials presently has a consensus target price of $71.92, indicating a potential upside of 87.70%. Given MP Materials’ stronger consensus rating and higher probable upside, equities analysts plainly believe MP Materials is more favorable than Algoma Steel Group.
Profitability
This table compares MP Materials and Algoma Steel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MP Materials | -19.85% | -1.21% | -0.62% |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
Valuation & Earnings
This table compares MP Materials 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 | |
| MP Materials | $224.44 million | 30.40 | -$85.87 million | ($0.34) | -112.69 |
| Algoma Steel Group | $1.49 billion | 0.34 | -$704.89 million | ($7.35) | -0.64 |
MP Materials has higher earnings, but lower revenue than Algoma Steel Group. MP Materials 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.
Institutional and Insider Ownership
52.5% of MP Materials shares are held by institutional investors. Comparatively, 72.0% of Algoma Steel Group shares are held by institutional investors. 8.2% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
MP Materials has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Summary
MP Materials beats Algoma Steel Group on 12 of the 14 factors compared between the two stocks.
About MP Materials
MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
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.
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