SunCoke Energy (NYSE:SXC) vs. Sigma Lithium (NASDAQ:SGML) Head to Head Contrast

SunCoke Energy (NYSE:SXC) and Sigma Lithium (NASDAQ:SGML) are both small-cap materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares SunCoke Energy and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunCoke Energy	-2.88%	6.37%	2.28%
Sigma Lithium	-19.36%	-37.40%	-7.66%

Risk and Volatility

SunCoke Energy has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SunCoke Energy and Sigma Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCoke Energy	0	2	0	0	2.00
Sigma Lithium	3	3	2	0	1.88

SunCoke Energy currently has a consensus target price of $9.00, indicating a potential downside of 12.23%. Sigma Lithium has a consensus target price of $14.30, indicating a potential upside of 67.64%. Given Sigma Lithium’s higher possible upside, analysts plainly believe Sigma Lithium is more favorable than SunCoke Energy.

Valuation and Earnings

This table compares SunCoke Energy and Sigma Lithium”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCoke Energy	$1.90 billion	0.46	-$44.20 million	($0.64)	-16.02
Sigma Lithium	$110.01 million	8.74	-$50.19 million	($0.24)	-35.54

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.

Insider and Institutional Ownership

90.4% of SunCoke Energy shares are held by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are held by institutional investors. 1.7% of SunCoke Energy shares are held by insiders. Comparatively, 48.6% of Sigma Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

SunCoke Energy beats Sigma Lithium on 9 of the 14 factors compared between the two stocks.

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.

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.