Gerdau (NYSE:GGB) and EVRAZ (OTCMKTS:EVRZF) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Institutional and Insider Ownership
9.6% of Gerdau shares are held by institutional investors. 0.0% of Gerdau shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current recommendations for Gerdau and EVRAZ, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility and Risk
Gerdau has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, EVRAZ has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gerdau and EVRAZ’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gerdau||$12.63 billion||0.57||$630.34 million||$0.40||10.45|
|EVRAZ||$12.84 billion||0.49||$2.41 billion||$1.65||2.67|
EVRAZ has higher revenue and earnings than Gerdau. EVRAZ is trading at a lower price-to-earnings ratio than Gerdau, indicating that it is currently the more affordable of the two stocks.
This table compares Gerdau and EVRAZ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gerdau beats EVRAZ on 10 of the 13 factors compared between the two stocks.
Gerdau S.A. provides steel-related products and services worldwide. It operates through four segments: Brazil Operations, North America Operations, South America Operations, and Special Steel Operations. The company offers semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles, which are used primarily in the construction and manufacturing industries; and drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire meshes, nails, and clamps, as well as mines and produces iron ore. It also produces special steel products for use in auto parts, light and heavy vehicles, and agricultural machinery, as well as the oil and gas, wind energy, machinery and equipment, mining and rail, and others markets. In addition, the company offers flat products comprising hot rolled coils and heavy plates; and resells flat steel products. It sells its products through independent distributors, direct sales from the mills, and its retail network. The company was founded in 1901 and is based in Sao Paulo, Brazil. Gerdau S.A. is a subsidiary of Metalúrgica Gerdau S.A.
EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. The company operates through four segments: Steel; Steel, North America; Coal; and Other Operations. Its products include construction products, industrial products, railway products, vanadium products, and pipes, as well as raw materials, such as iron ore, coal, and limestone products. The company is involved in the extraction of vanadium ore; iron ore mining and enrichment; and coal mining and enrichment, as well as energy-generation, shipping, and railway transportation businesses. It has operations in the Commonwealth of Independent States, America, Asia, Europe, Africa, and internationally. The company was founded in 1992 and is headquartered in Moscow, Russia. EVRAZ plc is a subsidiary of Lanebrook Limited.
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