Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY – Get Free Report) and Salzgitter (OTCMKTS:SZGPY – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Analyst Recommendations
This is a breakdown of current recommendations for Usinas Siderurgicas de Minas Gerais and Salzgitter, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Usinas Siderurgicas de Minas Gerais | 0 | 1 | 0 | 0 | 2.00 |
| Salzgitter | 2 | 2 | 1 | 1 | 2.17 |
Earnings & Valuation
This table compares Usinas Siderurgicas de Minas Gerais and Salzgitter”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Usinas Siderurgicas de Minas Gerais | $4.80 billion | 0.12 | -$27.06 million | ($0.49) | -2.22 |
| Salzgitter | $10.83 billion | 0.16 | -$381.12 million | ($0.86) | -3.76 |
Usinas Siderurgicas de Minas Gerais has higher earnings, but lower revenue than Salzgitter. Salzgitter is trading at a lower price-to-earnings ratio than Usinas Siderurgicas de Minas Gerais, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Usinas Siderurgicas de Minas Gerais and Salzgitter’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Usinas Siderurgicas de Minas Gerais | -12.91% | 1.19% | 0.79% |
| Salzgitter | -4.45% | -9.40% | -4.03% |
Risk & Volatility
Usinas Siderurgicas de Minas Gerais has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Salzgitter has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Summary
Salzgitter beats Usinas Siderurgicas de Minas Gerais on 7 of the 12 factors compared between the two stocks.
About Usinas Siderurgicas de Minas Gerais
Usinas Siderúrgicas de Minas Gerais S.A. manufactures and markets flat steel products in Brazil and internationally. The company operates through three segments: Mining and Logistics, Steel Metallurgy, and Steel Transformation. It extracts and process iron ore, such as pellet and sinter feed and, granulated iron ore; provides storage, handling, and road cargo transportation services; and operates highway and railway cargo terminals. It also manufactures and sells steel products; manufactures and installs equipment for various industries; and transforms cold-rolled coils into hot-dip galvanized coils. In addition, the company provides technology transfer services for steel industry; project management and services for civil construction and capital goods industry; road transportation of flat steel; and texturing and chrome plating of cylinders. It serves automotive, construction, distribution, energy, white line, oil and gas, and machines and equipment markets. Usinas Siderúrgicas de Minas Gerais S.A. was founded in 1956 and is headquartered in Belo Horizonte, Brazil.
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.
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