Gerdau (NYSE: GGB) is one of 28 publicly-traded companies in the “Steel” industry, but how does it contrast to its competitors? We will compare Gerdau to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.

Dividends

Gerdau pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Gerdau pays out -3.2% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.0% and pay out 60.3% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Gerdau and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gerdau $10.98 billion $1.13 billion -11.45
Gerdau Competitors $7.78 billion $1.01 billion 33.99

Gerdau has higher revenue and earnings than its competitors. Gerdau is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Gerdau has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, Gerdau’s competitors have a beta of 1.37, indicating that their average stock price is 37% more volatile than the S&P 500.

Profitability

This table compares Gerdau and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gerdau -5.73% 3.47% 1.61%
Gerdau Competitors -984.09% 4.99% 4.39%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Gerdau and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gerdau 0 2 4 0 2.67
Gerdau Competitors 290 842 960 29 2.34

As a group, “Steel” companies have a potential upside of 4.33%. Given Gerdau’s competitors higher possible upside, analysts clearly believe Gerdau has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

5.3% of Gerdau shares are held by institutional investors. Comparatively, 58.0% of shares of all “Steel” companies are held by institutional investors. 0.0% of Gerdau shares are held by company insiders. Comparatively, 7.6% of shares of all “Steel” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Gerdau competitors beat Gerdau on 8 of the 15 factors compared.

Gerdau Company Profile

Gerdau S.A. (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. Its segments are Brazil Operations, which includes operations of steel and iron ore in Brazil, except Special Steels, and the operation of metallurgical coal and coke in Colombia; North America Operations, which includes all operations in North America, except those of Mexico and Special Steels; South America Operations, which includes operations in South America, except Brazil and the operation of metallurgical coal and coke in Colombia, and Special Steel Operations, including special steel operations in Brazil, Spain, the United States and India. It supplies its customers a range of products, including iron ore semi-finished products.

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