Outokumpu (OTCMKTS:OUTKY – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Risk & Volatility
Outokumpu has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Outokumpu and Algoma Steel Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outokumpu | 1 | 4 | 2 | 0 | 2.14 |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outokumpu | $6.19 billion | 0.47 | -$155.00 million | ($0.15) | -20.67 |
| Algoma Steel Group | $1.49 billion | 0.30 | -$704.89 million | ($7.45) | -0.56 |
Outokumpu has higher revenue and earnings than Algoma Steel Group. Outokumpu 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 & Insider Ownership
72.0% of Algoma Steel Group shares are owned by institutional investors. 7.8% of Algoma Steel Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Outokumpu and Algoma Steel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outokumpu | -2.32% | -3.67% | -2.20% |
| Algoma Steel Group | -60.03% | -75.76% | -23.96% |
Summary
Outokumpu beats Algoma Steel Group on 9 of the 13 factors compared between the two stocks.
About Outokumpu
Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.
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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