Sigma Lithium (NASDAQ:SGML – Get Free Report) and SunCoke Energy (NYSE:SXC – Get Free Report) are both small-cap materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Risk & Volatility
Sigma Lithium has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Institutional and Insider Ownership
64.9% of Sigma Lithium shares are owned by institutional investors. Comparatively, 90.5% of SunCoke Energy shares are owned by institutional investors. 48.6% of Sigma Lithium shares are owned by insiders. Comparatively, 1.7% of SunCoke Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Sigma Lithium and SunCoke Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sigma Lithium | $110.01 million | 7.66 | -$50.19 million | ($0.24) | -31.17 |
| SunCoke Energy | $1.84 billion | 0.45 | -$44.20 million | ($0.64) | -15.15 |
SunCoke Energy has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sigma Lithium and SunCoke Energy’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% |
| SunCoke Energy | -2.88% | 6.37% | 2.28% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Sigma Lithium and SunCoke Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sigma Lithium | 3 | 2 | 3 | 0 | 2.00 |
| SunCoke Energy | 0 | 2 | 0 | 0 | 2.00 |
Sigma Lithium currently has a consensus price target of $14.30, suggesting a potential upside of 91.18%. SunCoke Energy has a consensus price target of $9.00, suggesting a potential downside of 7.17%. Given Sigma Lithium’s higher probable upside, research analysts plainly believe Sigma Lithium is more favorable than SunCoke Energy.
Summary
SunCoke Energy beats Sigma Lithium on 7 of the 12 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 SunCoke Energy
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. The company was founded in 1960 and is headquartered in Lisle, Illinois.
Receive News & Ratings for Sigma Lithium Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sigma Lithium and related companies with MarketBeat.com's FREE daily email newsletter.
