Constellium (NYSE:CSTM) vs. Algoma Steel Group (NASDAQ:ASTL) Financial Survey

Algoma Steel Group (NASDAQ:ASTL) and Constellium (NYSE:CSTM) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares Algoma Steel Group and Constellium”s top-line 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	0.33	-$704.89 million	($7.35)	-0.63
Constellium	$8.45 billion	0.43	$273.00 million	$3.88	6.97

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

Profitability

This table compares Algoma Steel Group and Constellium’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%
Constellium	5.69%	51.66%	9.63%

Risk & Volatility

Algoma Steel Group has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Constellium has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algoma Steel Group	1	3	0	0	1.75
Constellium	0	3	4	0	2.57

Constellium has a consensus price target of $35.80, suggesting a potential upside of 32.30%. Given Constellium’s stronger consensus rating and higher possible upside, analysts clearly believe Constellium is more favorable than Algoma Steel Group.

Insider and Institutional Ownership

72.0% of Algoma Steel Group shares are held by institutional investors. Comparatively, 92.6% of Constellium shares are held by institutional investors. 1.2% of Constellium shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Constellium beats Algoma Steel Group on 13 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 Constellium

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.