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

Dividends

USINAS SIDERURG/S pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. Mechel PAO does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Mechel PAO N/A N/A N/A
USINAS SIDERURG/S 2.48% 1.87% 1.11%

Insider and Institutional Ownership

5.3% of Mechel PAO shares are owned by institutional investors. Comparatively, 0.2% of USINAS SIDERURG/S shares are owned by institutional investors. 36.3% of Mechel PAO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mechel PAO and USINAS SIDERURG/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mechel PAO 0 2 0 0 2.00
USINAS SIDERURG/S 0 0 0 0 N/A

Mechel PAO currently has a consensus target price of $9.75, suggesting a potential upside of 261.11%. Given Mechel PAO’s higher possible upside, equities analysts clearly believe Mechel PAO is more favorable than USINAS SIDERURG/S.

Volatility and Risk

Mechel PAO has a beta of -1.15, indicating that its share price is 215% less volatile than the S&P 500. Comparatively, USINAS SIDERURG/S has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mechel PAO and USINAS SIDERURG/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mechel PAO $5.13 billion 0.11 $197.62 million N/A N/A
USINAS SIDERURG/S $3.36 billion 0.42 $72.98 million N/A N/A

Mechel PAO has higher revenue and earnings than USINAS SIDERURG/S.

Summary

USINAS SIDERURG/S beats Mechel PAO on 6 of the 11 factors compared between the two stocks.

About Mechel PAO

Mechel PAO, together with its subsidiaries, engages in mining, steel, and power businesses in Russia, Asia, Europe, the Commonwealth of Independent States, the Middle East, the United States, and internationally. Its Mining segment produces and sells coking, metallurgical, and steam coal; coke; chemical products, including coal tar, coal benzene, and other compounds; and iron ore and iron ore concentrates, as well as offers sea, rail, and motor transportation logistics services to third parties. The company's Steel segment produces and sells semi-finished steel products, long steel products, and carbon and stainless flat products; ferrosilicon products; and pig iron, as well as value-added metal products, including wire products, stampings and forgings, structural shapes, beams, and rails. Its Power segment generates and supplies electricity, heat energy, and other power resources to third parties. The company was formerly known as Mechel OAO and changed its name to Mechel PAO in March 2016. Mechel PAO was founded in 2003 and is based in Moscow, Russia.

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.

Receive News & Ratings for Mechel PAO Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mechel PAO and related companies with MarketBeat.com's FREE daily email newsletter.