BHP Group Limited (BHP)vsGerdau SA ADR (GGB)
BHP
BHP Group Limited
$79.30
+2.91%
BASIC MATERIALS · Cap: $201.45B
GGB
Gerdau SA ADR
$4.43
-1.77%
BASIC MATERIALS · Cap: $8.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 28% more annual revenue ($69.20B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 2.4%. BHP appears more attractively valued with a PEG of 5.95. BHP earns a higher WallStSmart Score of 65/100 (C+).
BHP
Buy65
out of 100
Grade: C+
GGB
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.5%
Fair Value
$43.18
Current Price
$79.30
$36.12 premium
Margin of Safety
+89.2%
Fair Value
$40.35
Current Price
$4.43
$35.92 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.7%
Every $100 of equity generates 25 in profit
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 3.1% — below average capital efficiency
2.4% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : GGB
The strongest argument for GGB centers on Price/Book.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : GGB
The primary concerns for GGB are P/E Ratio, Return on Equity, Profit Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
BHP profiles as a mature stock while GGB is a value play — different risk/reward profiles.
GGB carries more volatility with a beta of 0.89 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
BHP scores higher overall (65/100 vs 42/100), backed by strong 19.0% margins and 10.8% revenue growth. GGB offers better value entry with a 89.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
Gerdau SA ADR
BASIC MATERIALS · STEEL · USA
Gerdau SA is a leading Brazilian steel manufacturer and a prominent player in the Americas’ long steel segment, notably recognized through its American Depositary Receipts (ADRs). The company excels in producing a diverse range of steel products, serving critical industries such as construction, automotive, and manufacturing. Gerdau is committed to innovation and sustainability, employing advanced technologies to optimize operations and reduce environmental impact. With its robust operational network and focus on quality, Gerdau is strategically positioned to capitalize on emerging growth opportunities within the global steel industry.
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