Critical Review: Algoma Steel Group (NASDAQ:ASTL) versus i-80 Gold (NYSE:IAUX)
by Kim Johansen · The Markets DailyAlgoma Steel Group (NASDAQ:ASTL – Get Free Report) and i-80 Gold (NYSE:IAUX – Get Free Report) are both small-cap materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Profitability
This table compares Algoma Steel Group and i-80 Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Algoma Steel Group | -71.60% | -110.49% | -25.74% |
| i-80 Gold | -231.43% | -21.18% | -12.67% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Algoma Steel Group and i-80 Gold, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Algoma Steel Group | 1 | 3 | 0 | 0 | 1.75 |
| i-80 Gold | 0 | 0 | 1 | 0 | 3.00 |
i-80 Gold has a consensus target price of $2.75, suggesting a potential upside of 89.66%. Given i-80 Gold’s stronger consensus rating and higher possible upside, analysts clearly believe i-80 Gold is more favorable than Algoma Steel Group.
Earnings and Valuation
This table compares Algoma Steel Group and i-80 Gold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Algoma Steel Group | $1.54 billion | 0.32 | -$704.89 million | ($7.35) | -0.64 |
| i-80 Gold | $130.05 million | 9.67 | -$65.20 million | ($0.30) | -4.83 |
i-80 Gold has lower revenue, but higher earnings than Algoma Steel Group. i-80 Gold 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.
Volatility & Risk
Algoma Steel Group has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, i-80 Gold has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Institutional and Insider Ownership
72.0% of Algoma Steel Group shares are held by institutional investors. Comparatively, 61.3% of i-80 Gold shares are held by institutional investors. 7.8% of Algoma Steel Group shares are held by company insiders. Comparatively, 1.4% of i-80 Gold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
i-80 Gold beats Algoma Steel Group on 8 of the 14 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 i-80 Gold
i-80 Gold Corp. is a mining company, engages in the exploration, development and production of gold and silver mineral deposits principally in the United States. i-80 Gold Corp. is based in Reno, Nevada.