Gerdau SA ADR (GGB)vsRio Tinto ADR (RIO)
GGB
Gerdau SA ADR
$4.43
-1.77%
BASIC MATERIALS · Cap: $8.72B
RIO
Rio Tinto ADR
$100.48
+4.14%
BASIC MATERIALS · Cap: $161.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 20% more annual revenue ($69.20B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 2.4%. RIO appears more attractively valued with a PEG of 5.69. RIO earns a higher WallStSmart Score of 54/100 (C-).
GGB
Hold42
out of 100
Grade: D
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+89.2%
Fair Value
$40.35
Current Price
$4.43
$35.92 discount
Margin of Safety
+14.1%
Fair Value
$114.19
Current Price
$100.48
$13.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Moderate valuation
ROE of 3.1% — below average capital efficiency
2.4% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : GGB
The strongest argument for GGB centers on Price/Book.
Bull Case : RIO
The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
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.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GGB profiles as a value stock while RIO is a mature play — different risk/reward profiles.
GGB carries more volatility with a beta of 0.89 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 42/100), backed by strong 17.3% margins and 14.6% 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.
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.
Visit Website →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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