Contrasting McEwen (NYSE:MUX) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY)

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

Earnings and Valuation

This table compares McEwen and Usinas Siderurgicas de Minas Gerais”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McEwen $197.55 million 6.22 $34.43 million $1.26 15.89
Usinas Siderurgicas de Minas Gerais $4.70 billion 0.17 -$551.30 million ($0.34) -4.29

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for McEwen and Usinas Siderurgicas de Minas Gerais, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McEwen 1 1 3 0 2.40
Usinas Siderurgicas de Minas Gerais 0 1 0 0 2.00

McEwen presently has a consensus price target of $28.00, indicating a potential upside of 39.86%. Given McEwen’s stronger consensus rating and higher probable upside, equities analysts clearly believe McEwen is more favorable than Usinas Siderurgicas de Minas Gerais.

Risk & Volatility

McEwen has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

17.0% of McEwen shares are held by institutional investors. 14.8% of McEwen shares are held 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.

Profitability

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

Net Margins Return on Equity Return on Assets
McEwen 32.46% 13.48% 9.13%
Usinas Siderurgicas de Minas Gerais -8.87% 5.60% 3.74%

Summary

McEwen beats Usinas Siderurgicas de Minas Gerais on 12 of the 14 factors compared between the two stocks.

About McEwen

(Get Free Report)

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

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.

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