Analyzing Almonty Industries (NASDAQ:ALM) & Vale (NYSE:VALE)

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

Institutional and Insider Ownership

21.9% of Vale shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Almonty Industries and Vale, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Almonty Industries	0	2	5	1	2.88
Vale	1	12	2	1	2.19

Almonty Industries presently has a consensus price target of $24.21, indicating a potential upside of 85.65%. Vale has a consensus price target of $16.04, indicating a potential upside of 13.79%. Given Almonty Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Almonty Industries is more favorable than Vale.

Profitability

This table compares Almonty Industries and Vale’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%
Vale	5.11%	19.87%	8.58%

Volatility and Risk

Almonty Industries has a beta of 4.15, meaning that its share price is 315% more volatile than the S&P 500. Comparatively, Vale has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Valuation & Earnings

This table compares Almonty Industries and Vale”s 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	161.45	-$115.88 million	$0.16	81.50
Vale	$38.40 billion	1.67	$2.35 billion	$0.49	28.77

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

Summary

Almonty Industries beats Vale on 7 of the 13 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 Vale

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.