JFE (OTCMKTS:JFEEF – Get Free Report) and Algoma Steel Group (NASDAQ:ASTL – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Profitability
This table compares JFE and Algoma Steel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JFE | 1.49% | 2.76% | 1.25% |
| Algoma Steel Group | -13.51% | -22.24% | -10.20% |
Valuation and Earnings
This table compares JFE 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 | |
| JFE | $31.91 billion | 0.25 | $606.33 million | $0.71 | 17.59 |
| Algoma Steel Group | $2.49 billion | 0.18 | -$62.28 million | ($2.23) | -1.87 |
JFE has higher revenue and earnings than Algoma Steel Group. Algoma Steel Group is trading at a lower price-to-earnings ratio than JFE, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
JFE has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Algoma Steel Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.
Insider and Institutional Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations for JFE and Algoma Steel Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JFE | 0 | 0 | 0 | 0 | 0.00 |
| Algoma Steel Group | 0 | 3 | 0 | 0 | 2.00 |
Summary
JFE beats Algoma Steel Group on 8 of the 11 factors compared between the two stocks.
About JFE
JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment handles the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.
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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