Norsk Hydro ASA (OTCMKTS:NHYDY) versus Sigma Lithium (NASDAQ:SGML) Head-To-Head Contrast

Sigma Lithium (NASDAQ:SGML) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

64.9% of Sigma Lithium shares are held by institutional investors. Comparatively, 0.0% of Norsk Hydro ASA shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by insiders. Comparatively, 0.0% of Norsk Hydro ASA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sigma Lithium and Norsk Hydro ASA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Lithium	$142.49 million	6.94	-$50.19 million	($0.24)	-36.62
Norsk Hydro ASA	$20.05 billion	0.79	$647.52 million	$0.52	15.33

Norsk Hydro ASA has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sigma Lithium and Norsk Hydro ASA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Lithium	3	3	2	0	1.88
Norsk Hydro ASA	1	7	2	1	2.27

Sigma Lithium presently has a consensus target price of $14.30, suggesting a potential upside of 62.68%. Given Sigma Lithium’s higher possible upside, equities analysts clearly believe Sigma Lithium is more favorable than Norsk Hydro ASA.

Profitability

This table compares Sigma Lithium and Norsk Hydro ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Lithium	-19.36%	-37.40%	-7.66%
Norsk Hydro ASA	4.90%	11.46%	6.05%

Volatility and Risk

Sigma Lithium has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Summary

Norsk Hydro ASA beats Sigma Lithium on 10 of the 14 factors compared between the two stocks.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.