Head to Head Analysis: Newmont (NYSE:NEM) versus Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY)

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) and Newmont (NYSE:NEM) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Usinas Siderurgicas de Minas Gerais and Newmont, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usinas Siderurgicas de Minas Gerais	0	1	0	0	2.00
Newmont	0	4	18	2	2.92

Newmont has a consensus price target of $133.78, indicating a potential upside of 15.25%. Given Newmont’s stronger consensus rating and higher probable upside, analysts clearly believe Newmont is more favorable than Usinas Siderurgicas de Minas Gerais.

Volatility & Risk

Usinas Siderurgicas de Minas Gerais has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Newmont has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Usinas Siderurgicas de Minas Gerais and Newmont”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	$4.70 billion	0.16	-$551.30 million	($0.34)	-4.12
Newmont	$22.67 billion	5.40	$7.08 billion	$7.92	14.66

Newmont has higher revenue and earnings than Usinas Siderurgicas de Minas Gerais. Usinas Siderurgicas de Minas Gerais is trading at a lower price-to-earnings ratio than Newmont, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

68.8% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Usinas Siderurgicas de Minas Gerais and Newmont’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Usinas Siderurgicas de Minas Gerais	-8.87%	5.49%	3.68%
Newmont	33.36%	29.10%	17.68%

Summary

Newmont beats Usinas Siderurgicas de Minas Gerais on 14 of the 15 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 Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.