Contrasting Namib Minerals (NASDAQ:NAMM) & Algoma Steel Group (NASDAQ:ASTL)

Namib Minerals (NASDAQ:NAMM) and Algoma Steel Group (NASDAQ:ASTL) are both small-cap materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Namib Minerals and Algoma Steel Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Namib Minerals	1	1	0	0	1.50
Algoma Steel Group	1	3	0	0	1.75

Risk and Volatility

Namib Minerals has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Insider & Institutional Ownership

59.5% of Namib Minerals shares are owned by institutional investors. Comparatively, 72.0% of Algoma Steel Group shares are owned by institutional investors. 30.5% of Namib Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Namib Minerals and Algoma Steel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Namib Minerals	N/A	N/A	N/A
Algoma Steel Group	-71.60%	-110.49%	-25.74%

Earnings & Valuation

This table compares Namib Minerals and Algoma Steel Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Namib Minerals	$82.60 million	0.85	$101.18 million	($0.96)	-1.36
Algoma Steel Group	$1.49 billion	0.32	-$704.89 million	($7.35)	-0.62

Namib Minerals has higher earnings, but lower revenue than Algoma Steel Group. Namib Minerals 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.

Summary

Namib Minerals beats Algoma Steel Group on 7 of the 12 factors compared between the two stocks.

About Namib Minerals

Namib Minerals is a gold producer, developer and explorer with operations focused principally in Zimbabwe. Namib Minerals, formerly known as Hennessy Capital Investment Corp. VI, is based in New York.

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.