National Steel (NYSE:SID – Get Free Report) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY – 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 profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Volatility & Risk
National Steel has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Profitability
This table compares National Steel and Usinas Siderurgicas de Minas Gerais’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Steel | -3.92% | -10.69% | -1.75% |
| Usinas Siderurgicas de Minas Gerais | -10.22% | 4.13% | 2.76% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Steel | $8.02 billion | 0.17 | -$358.62 million | ($0.24) | -4.27 |
| Usinas Siderurgicas de Minas Gerais | $4.70 billion | 0.20 | -$551.30 million | ($0.39) | -4.44 |
National Steel 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 National Steel, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for National Steel and Usinas Siderurgicas de Minas Gerais, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Steel | 2 | 1 | 0 | 0 | 1.33 |
| Usinas Siderurgicas de Minas Gerais | 0 | 1 | 0 | 0 | 2.00 |
National Steel presently has a consensus target price of $1.40, suggesting a potential upside of 36.59%. Given National Steel’s higher possible upside, research analysts clearly believe National Steel is more favorable than Usinas Siderurgicas de Minas Gerais.
Summary
National Steel beats Usinas Siderurgicas de Minas Gerais on 7 of the 11 factors compared between the two stocks.
About National Steel
Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.
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.
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