Algoma Steel Group (NASDAQ:ASTL) & DPM Metals (OTCMKTS:DPMLF) Critical Review

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

Insider and Institutional Ownership

72.0% of Algoma Steel Group shares are held by institutional investors. 0.3% of DPM Metals shares are held by company insiders. Comparatively, 7.8% of Algoma Steel Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

DPM Metals has a beta of 0.7, indicating that its stock price is 30% less 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DPM Metals	50.26%	25.66%	21.67%
Algoma Steel Group	-71.60%	-110.49%	-25.74%

Analyst Ratings

This is a summary of current ratings and recommmendations for DPM Metals and Algoma Steel Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DPM Metals	0	2	3	0	2.60
Algoma Steel Group	1	3	0	0	1.75

Valuation and Earnings

This table compares DPM Metals and Algoma Steel Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DPM Metals	$950.48 million	9.60	$369.23 million	$3.04	13.69
Algoma Steel Group	$1.49 billion	0.30	-$704.89 million	($7.35)	-0.59

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

Summary

DPM Metals beats Algoma Steel Group on 9 of the 13 factors compared between the two stocks.

About DPM Metals

Dundee Precious Metals Inc., a gold mining company, engages in the acquisition, exploration, development, mining, and processing of precious metals. The company primarily explores for gold, copper, and silver deposits. It holds a portfolio of projects located in Bulgaria, Namibia, Serbia, and Ecuador. The company is based in Toronto, Canada.

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.