WallStSmart

Gerdau SA ADR (GGB)vsCompanhia Siderurgica Nacional ADR (SID)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gerdau SA ADR generates 56% more annual revenue ($69.20B vs $44.49B). GGB leads profitability with a 2.4% profit margin vs -4.5%. SID appears more attractively valued with a PEG of 0.32. GGB earns a higher WallStSmart Score of 52/100 (C-).

GGB

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 5.3Quality: 7.5
Piotroski: 3/9Altman Z: 2.84

SID

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 3.0Value: 6.7Quality: 4.0
Piotroski: 6/9Altman Z: 0.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GGBUndervalued (+76.4%)

Margin of Safety

+76.4%

Fair Value

$18.40

Current Price

$5.10

$13.30 discount

UndervaluedFair: $18.40Overvalued

Intrinsic value data unavailable for SID.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GGB3 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
37.9%8/10

Earnings expanding 37.9% YoY

SID3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
3321.0%10/10

Earnings expanding 3321.0% YoY

Areas to Watch

GGB4 concerns · Avg: 3.3/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SID4 concerns · Avg: 2.5/10
Market CapQuality
$1.32B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

Return on EquityProfitability
-15.5%2/10

ROE of -15.5% — below average capital efficiency

Revenue GrowthGrowth
-2.8%2/10

Revenue declined 2.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : GGB

The strongest argument for GGB centers on Price/Book, Debt/Equity, EPS Growth.

Bull Case : SID

The strongest argument for SID centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.32 suggests the stock is reasonably priced for its growth.

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 : SID

The primary concerns for SID are Market Cap, Operating Margin, Return on Equity. Debt-to-equity of 4.01 is elevated, increasing financial risk.

Key Dynamics to Monitor

GGB profiles as a value stock while SID is a turnaround play — different risk/reward profiles.

SID carries more volatility with a beta of 1.33 — expect wider price swings.

SID is growing revenue faster at -2.8% — sustainability is the question.

GGB generates stronger free cash flow (304M), providing more financial flexibility.

Bottom Line

GGB scores higher overall (52/100 vs 51/100). Both earn "Buy" and "Buy" 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 key player in the long steel sector across the Americas, represented by its American Depositary Receipts (ADRs). The company offers an extensive range of steel products catering to essential industries, including construction, automotive, and manufacturing, with a strong emphasis on innovation and sustainability. Leveraging advanced technologies, Gerdau is committed to enhancing operational efficiency while minimizing its environmental footprint. With a resilient operational structure and a focus on high-quality standards, Gerdau is well-positioned to seize growth opportunities in the evolving global steel industry.

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Companhia Siderurgica Nacional ADR

BASIC MATERIALS · STEEL · USA

Companhia Siderurgica Nacional (SID) is a leading integrated steel producer in Brazil, playing a vital role in the Latin American steel industry. The company offers a diverse portfolio of high-quality steel products, including flat and long steel, catering to industries such as construction, automotive, and manufacturing. With a strong focus on innovation and sustainability, SID is dedicated to enhancing operational efficiency while reducing its environmental impact. Its significant production capacity and strategic growth initiatives equip SID to capitalize on the increasing global demand for steel, thereby reinforcing its competitive positioning in the market.

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