Head-To-Head Survey: Cleveland-Cliffs (NYSE:CLF) & Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY)

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) and Cleveland-Cliffs (NYSE:CLF) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Institutional and Insider Ownership

67.7% of Cleveland-Cliffs shares are held by institutional investors. 1.7% of Cleveland-Cliffs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Usinas Siderurgicas de Minas Gerais and Cleveland-Cliffs”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	0.15	-$27.06 million	($0.49)	-2.61
Cleveland-Cliffs	$19.19 billion	0.35	-$754.00 million	($3.40)	-4.05

Usinas Siderurgicas de Minas Gerais has higher earnings, but lower revenue than Cleveland-Cliffs. Cleveland-Cliffs 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.

Profitability

This table compares Usinas Siderurgicas de Minas Gerais and Cleveland-Cliffs’ 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%
Cleveland-Cliffs	-9.00%	-20.02%	-6.10%

Analyst Ratings

This is a summary of recent recommendations and price targets for Usinas Siderurgicas de Minas Gerais and Cleveland-Cliffs, as provided 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
Cleveland-Cliffs	2	5	3	0	2.10

Cleveland-Cliffs has a consensus target price of $13.80, suggesting a potential upside of 0.28%. Given Cleveland-Cliffs’ stronger consensus rating and higher probable upside, analysts plainly believe Cleveland-Cliffs is more favorable than Usinas Siderurgicas de Minas Gerais.

Risk & Volatility

Usinas Siderurgicas de Minas Gerais has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Summary

Cleveland-Cliffs beats Usinas Siderurgicas de Minas Gerais on 9 of the 14 factors compared between the two stocks.

About Usinas Siderurgicas de Minas Gerais

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 Cleveland-Cliffs

Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.