WallStSmart

Gerdau SA ADR (GGB)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Gerdau SA ADR generates 1412% more annual revenue ($69.20B vs $4.58B). SQM leads profitability with a 12.9% profit margin vs 2.4%. SQM appears more attractively valued with a PEG of 0.58. SQM earns a higher WallStSmart Score of 66/100 (B-).

GGB

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 5.0Value: 6.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.93

SQM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 6.0Quality: 7.3
Piotroski: 6/9Altman Z: 2.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GGBUndervalued (+89.2%)

Margin of Safety

+89.2%

Fair Value

$40.35

Current Price

$4.43

$35.92 discount

UndervaluedFair: $40.35Overvalued
SQMUndervalued (+9.0%)

Margin of Safety

+9.0%

Fair Value

$82.67

Current Price

$92.17

$9.50 discount

UndervaluedFair: $82.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GGB1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

SQM4 strengths · Avg: 8.5/10
EPS GrowthGrowth
52.3%10/10

Earnings expanding 52.3% YoY

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

Revenue GrowthGrowth
23.3%8/10

Revenue surging 23.3% year-over-year

Areas to Watch

GGB4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

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

SQM1 concerns · Avg: 2.0/10
P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GGB

The strongest argument for GGB centers on Price/Book.

Bull Case : SQM

The strongest argument for SQM centers on EPS Growth, PEG Ratio, Operating Margin. Revenue growth of 23.3% demonstrates continued momentum. PEG of 0.58 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 : SQM

The primary concerns for SQM are P/E Ratio. A P/E of 44.2x leaves little room for execution misses.

Key Dynamics to Monitor

GGB profiles as a value stock while SQM is a growth play — different risk/reward profiles.

SQM carries more volatility with a beta of 0.98 — expect wider price swings.

SQM is growing revenue faster at 23.3% — sustainability is the question.

SQM generates stronger free cash flow (317M), providing more financial flexibility.

Bottom Line

SQM scores higher overall (66/100 vs 42/100) and 23.3% revenue growth. GGB offers better value entry with a 89.2% margin of safety. Both earn "Strong 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.

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Sociedad Quimica y Minera de Chile SA ADR B

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.

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