Head-To-Head Review: Nucor (NYSE:NUE) & Almonty Industries (NASDAQ:ALM)

Almonty Industries (NASDAQ:ALM) and Nucor (NYSE:NUE) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Almonty Industries and Nucor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Almonty Industries	0	2	5	1	2.88
Nucor	0	3	14	1	2.89

Almonty Industries presently has a consensus target price of $23.04, indicating a potential upside of 162.73%. Nucor has a consensus target price of $287.38, indicating a potential upside of 15.19%. Given Almonty Industries’ higher probable upside, equities analysts clearly believe Almonty Industries is more favorable than Nucor.

Volatility and Risk

Almonty Industries has a beta of 4.65, suggesting that its share price is 365% more volatile than the S&P 500. Comparatively, Nucor has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Valuation and Earnings

This table compares Almonty Industries and Nucor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Almonty Industries	$23.27 million	108.58	-$115.88 million	$0.16	54.81
Nucor	$32.49 billion	1.74	$1.74 billion	$15.71	15.88

Nucor has higher revenue and earnings than Almonty Industries. Nucor is trading at a lower price-to-earnings ratio than Almonty Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Almonty Industries and Nucor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Almonty Industries	125.89%	9.19%	3.97%
Nucor	9.26%	15.53%	9.78%

Institutional & Insider Ownership

76.5% of Nucor shares are owned by institutional investors. 0.6% of Nucor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Nucor beats Almonty Industries on 9 of the 14 factors compared between the two stocks.

About Almonty Industries

Almonty Industries Inc. is a producer of tungsten concentrate. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira Mine in Portugal. Almonty Industries Inc. is based in TORONTO.

About Nucor

Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. The Steel Products segment offers steel joists and joist girders, steel decks, and galvanized torque tubes for used in solar arrays, hollow structural section steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission. This segment is also involved in the piling distribution business. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; processes ferrous and nonferrous scrap metal; and engages in the natural gas production and industrial gas business. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It markets its products through in-house sales force; and internal distribution and trading companies. Nucor Corporation was founded in 1905 and is headquartered in Charlotte, North Carolina.