WallStSmart

Gerdau SA ADR (GGB)vsVale SA ADR (VALE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Vale SA ADR generates 211% more annual revenue ($214.86B vs $69.20B). VALE leads profitability with a 7.3% profit margin vs 2.4%. VALE appears more attractively valued with a PEG of 0.34. VALE earns a higher WallStSmart Score of 67/100 (B-).

GGB

Hold

42

out of 100

Grade: D

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

VALE

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 8.7Quality: 5.0
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
VALEUndervalued (+81.5%)

Margin of Safety

+81.5%

Fair Value

$94.06

Current Price

$15.85

$78.21 discount

UndervaluedFair: $94.06Overvalued

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

VALE5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Market CapQuality
$71.41B9/10

Large-cap with strong market position

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

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

VALE3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : GGB

The strongest argument for GGB centers on Price/Book.

Bull Case : VALE

The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.34 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 : VALE

The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.

Key Dynamics to Monitor

GGB carries more volatility with a beta of 0.89 — expect wider price swings.

VALE is growing revenue faster at 2.7% — sustainability is the question.

VALE generates stronger free cash flow (723M), providing more financial flexibility.

Monitor STEEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

VALE scores higher overall (67/100 vs 42/100). 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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Vale SA ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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