Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) vs. Outokumpu (OTCMKTS:OUTKY) Critical Analysis

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZYGet Free Report) and Outokumpu (OTCMKTS:OUTKYGet Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Usinas Siderurgicas de Minas Gerais and Outokumpu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Usinas Siderurgicas de Minas Gerais 0 1 0 0 2.00
Outokumpu 1 4 1 0 2.00

Profitability

This table compares Usinas Siderurgicas de Minas Gerais and Outokumpu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Usinas Siderurgicas de Minas Gerais -12.91% 1.22% 0.81%
Outokumpu -1.83% -2.90% -1.79%

Risk & Volatility

Usinas Siderurgicas de Minas Gerais has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Outokumpu has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Valuation & Earnings

This table compares Usinas Siderurgicas de Minas Gerais and Outokumpu”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Usinas Siderurgicas de Minas Gerais $4.80 billion 0.14 -$27.06 million ($0.49) -2.51
Outokumpu $6.43 billion 0.41 -$43.28 million ($0.12) -23.04

Usinas Siderurgicas de Minas Gerais has higher earnings, but lower revenue than Outokumpu. Outokumpu is trading at a lower price-to-earnings ratio than Usinas Siderurgicas de Minas Gerais, indicating that it is currently the more affordable of the two stocks.

About Usinas Siderurgicas de Minas Gerais

(Get Free Report)

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.

About Outokumpu

(Get Free Report)

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. The company operates through three segments: Europe, Americas, and Ferrochrome. It offers cold rolled coils, strips, and sheets; hot rolled coils, strips, and plates; quarto plates; precision strips; and specialized components, such as welded stainless-steel I-beams, H-beams, hollow-section tubes, bent profiles, structural sections, hardened and customized press plates, suction roll shells, and blancs and disks. The company also provides stainless steel powder which includes Supra 316L, Dura 17-4PH, Ultra 904L, Therma 253MA, Dura 4116, and Ni-free austenitic stainless steel powder; and nickel-based alloys. Its products are used in various applications, including commercial kitchen, cooking, food industry, and home appliances; automotive and transportation; building and infrastructure; energy; marine; and heavy industries. The company was founded in 1910 and is headquartered in Helsinki, Finland.

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