Gerdau (NYSE: GGB) is one of 26 publicly-traded companies in the “Steel” industry, but how does it weigh in compared to its competitors? We will compare Gerdau to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Dividends

Gerdau pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Gerdau pays out -3.3% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Gerdau and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gerdau 0 2 4 0 2.67
Gerdau Competitors 292 855 972 32 2.35

As a group, “Steel” companies have a potential upside of 15.29%. Given Gerdau’s competitors higher possible upside, analysts clearly believe Gerdau has less favorable growth aspects than its competitors.

Volatility and Risk

Gerdau has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500. Comparatively, Gerdau’s competitors have a beta of 1.42, meaning that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Gerdau and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gerdau -5.44% 3.74% 1.73%
Gerdau Competitors -1,029.80% 2.33% 2.21%

Insider & Institutional Ownership

5.2% of Gerdau shares are owned by institutional investors. Comparatively, 58.5% of shares of all “Steel” companies are owned by institutional investors. 0.0% of Gerdau shares are owned by insiders. Comparatively, 7.9% of shares of all “Steel” companies are owned by 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.

Earnings & Valuation

This table compares Gerdau and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Gerdau $10.85 billion -$828.79 million -10.00
Gerdau Competitors $8.51 billion $152.20 million -78.34

Gerdau has higher revenue, but lower earnings than its competitors. Gerdau is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Gerdau beats its competitors on 8 of the 15 factors compared.

About Gerdau

Gerdau S.A. (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. Its segments are Brazil Operations, which includes operations of steel and iron ore in Brazil, except Special Steels, and the operation of metallurgical coal and coke in Colombia; North America Operations, which includes all operations in North America, except those of Mexico and Special Steels; South America Operations, which includes operations in South America, except Brazil and the operation of metallurgical coal and coke in Colombia, and Special Steel Operations, including special steel operations in Brazil, Spain, the United States and India. It supplies its customers a range of products, including iron ore semi-finished products.

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