Vallourec (OTCMKTS:VLOUF) vs. Usinas Siderúrgicas de Minas Gerais (OTCMKTS:USNZY) Head to Head Contrast

Usinas Siderúrgicas de Minas Gerais (OTCMKTS:USNZY) and Vallourec (OTCMKTS:VLOUF) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Usinas Siderúrgicas de Minas Gerais and Vallourec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Usinas Siderúrgicas de Minas Gerais	8.90%	10.51%	6.91%
Vallourec	N/A	N/A	N/A

Dividends

Usinas Siderúrgicas de Minas Gerais pays an annual dividend of $0.06 per share and has a dividend yield of 3.2%. Vallourec pays an annual dividend of $0.81 per share and has a dividend yield of 4.3%. Usinas Siderúrgicas de Minas Gerais pays out 11.1% of its earnings in the form of a dividend. Vallourec pays out 40.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Usinas Siderúrgicas de Minas Gerais and Vallourec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usinas Siderúrgicas de Minas Gerais	0	1	0	0	2.00
Vallourec	0	0	0	0	N/A

Insider and Institutional Ownership

29.0% of Vallourec shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Usinas Siderúrgicas de Minas Gerais and Vallourec’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Usinas Siderúrgicas de Minas Gerais	$5.54 billion	N/A	$278.60 million	$0.54	3.50
Vallourec	N/A	N/A	N/A	$2.00	9.46

Usinas Siderúrgicas de Minas Gerais has higher revenue and earnings than Vallourec. Usinas Siderúrgicas de Minas Gerais is trading at a lower price-to-earnings ratio than Vallourec, indicating that it is currently the more affordable of the two stocks.

Summary

Usinas Siderúrgicas de Minas Gerais beats Vallourec on 5 of the 9 factors compared between the two stocks.

About Usinas Siderúrgicas de Minas Gerais

Usinas Siderúrgicas de Minas Gerais S.A. manufactures and markets flat steel products in Brazil and internationally. The company operates through three segments: Mining and Logistics, Steel Metallurgy, and Steel Transformation. It extracts and process iron ore, such as pellet and sinter feed and, granulated iron ore; provides storage, handling, and road cargo transportation services; and operates highway and railway cargo terminals. It also manufactures and sells steel products; manufactures and installs equipment for various industries; and transforms cold-rolled coils into hot-dip galvanized coils. In addition, the company provides technology transfer services for steel industry; project management and services for civil construction and capital goods industry; road transportation of flat steel; and texturing and chrome plating of cylinders. It serves automotive, construction, distribution, energy, white line, oil and gas, and machines and equipment markets. Usinas Siderúrgicas de Minas Gerais S.A. was founded in 1956 and is headquartered in Belo Horizonte, Brazil.

About Vallourec

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, the Middle East, and internationally. It operates through Tubes; Mine & Forests; and Holding Companies & Other segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; VAM connections; rigid subsea line pipes and onshore rigid line pipes; and carbon steel and steel alloy tubes, hollow bars, and connections. It also provides assistance in lowering tubes, inspecting connections, and supervising assembly; thread tubes inventory management; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; and integrated solutions for the subsea line pipe market comprising welding, coating, insulation, bending, logistics, project management, and service agreements. In addition, the company offers tubular products for geothermal; carbon capture, utilization, and storage; and hydrogen industries. Further, it provides tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections for the manufacture of cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and infrastructure construction, as well as axle tubes and gearbox applications for the automotive industry. Additionally, the company is involved in the iron ore and charcoal production businesses. It serves oil service, engineering, and construction companies; distributors and industrial equipment manufacturers; and energy companies, and carbon capture and storage specialists, as well as geothermal, green hydrogen, and solar developers. Vallourec S.A. was founded in 1895 and is based in Meudon, France.