General Steel (OTCMKTS:GSIH) versus Salzgitter (OTCMKTS:SZGPY) Head-To-Head Review

General Steel (OTCMKTS:GSIH) and Salzgitter (OTCMKTS:SZGPY) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk & Volatility

General Steel has a beta of -1.14, suggesting that its stock price is 214% less volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for General Steel and Salzgitter, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Steel	0	0	0	0	0.00
Salzgitter	3	1	1	1	2.00

Valuation & Earnings

This table compares General Steel and Salzgitter”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Steel	N/A	N/A	N/A	N/A	N/A
Salzgitter	$10.83 billion	0.19	-$381.12 million	($0.86)	-4.54

General Steel has higher earnings, but lower revenue than Salzgitter.

Profitability

This table compares General Steel and Salzgitter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Steel	N/A	N/A	N/A
Salzgitter	-4.45%	-9.40%	-4.03%

Summary

Salzgitter beats General Steel on 5 of the 8 factors compared between the two stocks.

About General Steel

General Steel Holdings, Inc. engages in the business of cell research, development, storage, and cell culture service in the People's Republic of China. General Steel Holdings, Inc. was incorporated in 2002 and is headquartered in Beijing, the People's Republic of China.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading. The Steel Processing segment produces various high-grade heavy plates; and manufactures line pipes, HFI-welded tubes, and precision and stainless-steel tubes. The Trading segment operates a European sales network, as well as trading companies and agencies worldwide. The Technology segment engages in the provision of machinery and plants for the filling and packaging of beverages, as well as special machinery engineering for shoe manufacturing and elastomer production. The company also provides IT, facility management, logistics, automotive engineering, and research and development services, as well as supplies raw materials. The company was founded in 1858 and is headquartered in Salzgitter, Germany.