Critical Analysis: Stardust Power (NASDAQ:SDST) vs. Alumina (OTCMKTS:AWCMY)

Alumina (OTCMKTS:AWCMY) and Stardust Power (NASDAQ:SDST) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Valuation and Earnings

This table compares Alumina and Stardust Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alumina	$500,000.00	5,353.60	-$150.10 million	N/A	N/A
Stardust Power	N/A	N/A	$140,000.00	N/A	N/A

Stardust Power has lower revenue, but higher earnings than Alumina.

Profitability

This table compares Alumina and Stardust Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alumina	N/A	N/A	N/A
Stardust Power	N/A	N/A	-94.02%

Institutional and Insider Ownership

32.8% of Stardust Power shares are owned by institutional investors. 1.0% of Alumina shares are owned by company insiders. Comparatively, 65.6% of Stardust Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Alumina has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Stardust Power has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alumina and Stardust Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alumina	0	0	0	0	0.00
Stardust Power	0	0	1	2	3.67

Stardust Power has a consensus price target of $12.50, suggesting a potential upside of 177.78%. Given Stardust Power’s stronger consensus rating and higher probable upside, analysts clearly believe Stardust Power is more favorable than Alumina.

Summary

Stardust Power beats Alumina on 7 of the 10 factors compared between the two stocks.

About Alumina

Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. It operates bauxite mines and alumina refineries in Australia, Guinea, Brazil, Spain, and Saudi Arabia; and holds a 55% interest in the Portland aluminum smelter in Victoria, Australia. The company was formerly known as WMC Limited and changed its name to Alumina Limited in December 2002. Alumina Limited was incorporated in 1970 and is headquartered in Southbank, Australia.

About Stardust Power

Stardust Power Inc. is a vertically-integrated lithium refinery that engages in producing battery-grade lithium. The company was founded in 2022 and is based in Greenwich, Connecticut.