Gerdau (GGB) Competitors

Gerdau (NYSE:GGB) and ArcelorMittal (NYSE:MT) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, community ranking, dividends, valuation, earnings, analyst recommendations, media sentiment, risk and institutional ownership.

Does the MarketBeat Community favor GGB or MT?

ArcelorMittal received 543 more outperform votes than Gerdau when rated by MarketBeat users. Likewise, 62.97% of users gave ArcelorMittal an outperform vote while only 58.64% of users gave Gerdau an outperform vote.

Company	Underperform	Outperform
Gerdau	Outperform Votes 285 58.64%	Underperform Votes 201 41.36%
ArcelorMittal	Outperform Votes 828 62.97%	Underperform Votes 487 37.03%

Which has more volatility and risk, GGB or MT?

Gerdau has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Is GGB or MT more profitable?

Gerdau has a net margin of 7.03% compared to ArcelorMittal's net margin of 2.14%. Gerdau's return on equity of 7.74% beat ArcelorMittal's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gerdau	7.03%	7.74%	5.23%
ArcelorMittal	2.14%	4.31%	2.56%

Do analysts rate GGB or MT?

Gerdau currently has a consensus price target of $5.00, suggesting a potential upside of 97.24%. ArcelorMittal has a consensus price target of $32.95, suggesting a potential upside of 21.05%. Given Gerdau's higher probable upside, analysts plainly believe Gerdau is more favorable than ArcelorMittal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gerdau	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
ArcelorMittal	0 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.57

Which has higher earnings and valuation, GGB or MT?

Gerdau has higher revenue and earnings than ArcelorMittal. Gerdau is trading at a lower price-to-earnings ratio than ArcelorMittal, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gerdau	$67.03B	0.08	$1.50B	$0.43	5.90
ArcelorMittal	$62.44B	0.36	$1.34B	$1.65	16.50

Do institutionals and insiders believe in GGB or MT?

1.5% of Gerdau shares are owned by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are owned by institutional investors. 0.0% of Gerdau shares are owned by company insiders. Comparatively, 0.1% of ArcelorMittal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Does the media refer more to GGB or MT?

In the previous week, ArcelorMittal had 10 more articles in the media than Gerdau. MarketBeat recorded 16 mentions for ArcelorMittal and 6 mentions for Gerdau. Gerdau's average media sentiment score of 1.34 beat ArcelorMittal's score of 0.75 indicating that Gerdau is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gerdau	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
ArcelorMittal	6 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Is GGB or MT a better dividend stock?

Gerdau pays an annual dividend of $0.06 per share and has a dividend yield of 2.4%. ArcelorMittal pays an annual dividend of $0.46 per share and has a dividend yield of 1.7%. Gerdau pays out 14.0% of its earnings in the form of a dividend. ArcelorMittal pays out 27.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gerdau is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

ArcelorMittal beats Gerdau on 11 of the 20 factors compared between the two stocks.