Gerdau (GGB) Competitors

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

Is MT or GGB a better dividend stock?

ArcelorMittal pays an annual dividend of $0.43 per share and has a dividend yield of 1.5%. Gerdau pays an annual dividend of $0.19 per share and has a dividend yield of 6.6%. ArcelorMittal pays out 26.1% of its earnings in the form of a dividend. Gerdau pays out 44.2% 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.

Do institutionals and insiders have more ownership in MT or GGB?

9.3% of ArcelorMittal shares are held by institutional investors. Comparatively, 1.5% of Gerdau shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company insiders. Comparatively, 0.0% of Gerdau shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Which has more risk & volatility, MT or GGB?

ArcelorMittal has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Gerdau has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Does the MarketBeat Community believe in MT or GGB?

ArcelorMittal received 541 more outperform votes than Gerdau when rated by MarketBeat users. Likewise, 62.96% of users gave ArcelorMittal an outperform vote while only 58.88% of users gave Gerdau an outperform vote.

Company	Underperform	Outperform
ArcelorMittal	Outperform Votes 826 62.96%	Underperform Votes 486 37.04%
Gerdau	Outperform Votes 285 58.88%	Underperform Votes 199 41.12%

Do analysts rate MT or GGB?

ArcelorMittal currently has a consensus price target of $31.17, indicating a potential upside of 9.92%. Gerdau has a consensus price target of $5.00, indicating a potential upside of 73.31%. Given Gerdau's stronger consensus rating and higher probable upside, analysts plainly believe Gerdau is more favorable than ArcelorMittal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ArcelorMittal	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50
Gerdau	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Is MT or GGB 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
ArcelorMittal	2.14%	4.31%	2.56%
Gerdau	7.03%	7.74%	5.23%

Does the media favor MT or GGB?

In the previous week, ArcelorMittal had 1 more articles in the media than Gerdau. MarketBeat recorded 9 mentions for ArcelorMittal and 8 mentions for Gerdau. Gerdau's average media sentiment score of 0.54 beat ArcelorMittal's score of 0.42 indicating that Gerdau is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
ArcelorMittal	4 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Gerdau	2 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better valuation and earnings, MT or GGB?

Gerdau has lower revenue, but higher 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
ArcelorMittal	$62.44B	0.37	$1.34B	$1.65	17.18
Gerdau	$12.43B	0.48	$1.50B	$0.43	6.71

Summary

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