ArcelorMittal (NYSE:MT) and USINAS SIDERURG/S (OTCMKTS:USNZY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Profitability

This table compares ArcelorMittal and USINAS SIDERURG/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcelorMittal 7.11% 12.62% 6.02%
USINAS SIDERURG/S 2.48% 1.87% 1.11%

Insider and Institutional Ownership

3.4% of ArcelorMittal shares are owned by institutional investors. Comparatively, 0.2% of USINAS SIDERURG/S shares are owned by institutional investors. 0.1% of ArcelorMittal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ArcelorMittal and USINAS SIDERURG/S’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ArcelorMittal $68.68 billion 0.47 $4.57 billion $5.34 5.95
USINAS SIDERURG/S $3.36 billion 0.32 $72.98 million N/A N/A

ArcelorMittal has higher revenue and earnings than USINAS SIDERURG/S.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ArcelorMittal and USINAS SIDERURG/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcelorMittal 1 1 8 0 2.70
USINAS SIDERURG/S 0 0 0 0 N/A

ArcelorMittal currently has a consensus target price of $40.00, indicating a potential upside of 25.87%. Given ArcelorMittal’s higher probable upside, equities analysts plainly believe ArcelorMittal is more favorable than USINAS SIDERURG/S.

Dividends

ArcelorMittal pays an annual dividend of $0.09 per share and has a dividend yield of 0.3%. USINAS SIDERURG/S pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. ArcelorMittal pays out 1.7% of its earnings in the form of a dividend.

Risk and Volatility

ArcelorMittal has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, USINAS SIDERURG/S has a beta of 3.55, indicating that its stock price is 255% more volatile than the S&P 500.

Summary

ArcelorMittal beats USINAS SIDERURG/S on 10 of the 13 factors compared between the two stocks.

About ArcelorMittal

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. It operates through NAFTA, Brazil, Europe, ACIS, and Mining segments. The company produces finished and semi-finished steel products with various specifications. Its principal steel products include semi-finished flat products, such as slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, and tinplate and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products, including bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company's principal mining products comprise iron ore lump, fines, concentrate, pellets, and sinter feed; and coking, pulverized coal injection, and thermal coal. It provides its steel products to the automotive, appliance, engineering, construction, energy, and machinery industries. The company sells its products in local markets and through a centralized marketing organization to customers in approximately 160 countries. It has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, and the United States; and coal mining activities in Kazakhstan and the United States. The company was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.

About USINAS SIDERURG/S

Usinas Sider├║rgicas de Minas Gerais S.A. manufactures and markets flat steel products in Brazil and internationally. The company's products include heavy plates, sincron, hot and cold rolled products, laser welded assemblies, slits/rolls, blanks, and hot-dip galvanized and electrogalvanized coils and sheets. It also provides pipes in various sizes, shapes, and thicknesses. The company serves appliance, agricultural and highway machinery, construction and infrastructure, energy, shipbuilding, automotive, and distribution markets. Usinas Sider├║rgicas de Minas Gerais S.A. was founded in 1950 and is based in Belo Horizonte, Brazil.

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