Algoma Steel Group (NASDAQ:ASTL – Get Free Report) and Olympic Steel (NASDAQ:ZEUS – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Profitability
This table compares Algoma Steel Group and Olympic Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Algoma Steel Group | -13.51% | -22.24% | -10.20% |
| Olympic Steel | 0.77% | 1.95% | 1.07% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Algoma Steel Group and Olympic Steel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Algoma Steel Group | 0 | 3 | 0 | 0 | 2.00 |
| Olympic Steel | 0 | 0 | 1 | 0 | 3.00 |
Volatility & Risk
Algoma Steel Group has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Olympic Steel has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.
Insider & Institutional Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. Comparatively, 87.1% of Olympic Steel shares are held by institutional investors. 7.8% of Algoma Steel Group shares are held by insiders. Comparatively, 13.8% of Olympic Steel shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Algoma Steel Group and Olympic Steel”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Algoma Steel Group | $2.07 billion | 0.24 | -$62.28 million | ($2.23) | -2.09 |
| Olympic Steel | $1.94 billion | 0.19 | $22.98 million | $1.22 | 26.67 |
Olympic Steel has lower revenue, but higher earnings than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than Olympic Steel, indicating that it is currently the more affordable of the two stocks.
Dividends
Algoma Steel Group pays an annual dividend of $0.20 per share and has a dividend yield of 4.3%. Olympic Steel pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Algoma Steel Group pays out -9.0% of its earnings in the form of a dividend. Olympic Steel pays out 52.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Olympic Steel has increased its dividend for 4 consecutive years. Algoma Steel Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Olympic Steel beats Algoma Steel Group on 13 of the 17 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 Olympic Steel
Olympic Steel, Inc. processes, distributes, and stores metal products primarily in the United States, Canada, and Mexico. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products. The company offers stainless steel and aluminum coil and sheet products, angles, rounds, and flat bars; alloy, heat treated, and abrasion resistant coils, sheets and plates; coated metals, including galvanized, galvannealed, electro galvanized, advanced high strength steels, aluminized, and automotive grades of steel; commercial quality, advanced high strength steel, drawing steel, and automotive grades cold rolled steel coil and sheet products; hot rolled carbon comprising hot rolled coil, pickled and oiled sheet and plate steel products, automotive grades, advanced high strength steels, and high strength low alloys; tube, pipe, and bar products, including round, square, and rectangular mechanical and structural tubing; hydraulic and stainless tubing; boiler tubing; carbon, stainless, and aluminum pipes; valves and fittings; and tin mill products, such as electrolytic tinplate, electrolytic chromium coated steel, and black plates. The company also provides cutting-to-length, slitting, shearing, blanking, tempering, stretcher-leveling, plate and laser processing, forming and machining, tube processing, finishing, and fabrication services, as well as value-added services, such as saw cutting, laser cutting, beveling, threading, and grooving services. It serves metal consuming industries, such as manufacturers and fabricators of transportation and material handling lift equipment, construction, mining and farm equipment, agriculture equipment, storage tanks, environmental and energy generation equipment, automobiles, food service, and electrical equipment, as well as general and plate fabricators, and metals service centers through direct sales force. Olympic Steel, Inc. was founded in 1954 and is based in Highland Hills, Ohio.
Receive News & Ratings for Algoma Steel Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Algoma Steel Group and related companies with MarketBeat.com's FREE daily email newsletter.
