Cleveland-Cliffs (NYSE:CLF – Get Free Report) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY – Get Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Volatility and Risk
Cleveland-Cliffs has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Profitability
This table compares Cleveland-Cliffs and Usinas Siderurgicas de Minas Gerais’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cleveland-Cliffs | -9.00% | -20.02% | -6.10% |
| Usinas Siderurgicas de Minas Gerais | -12.91% | 1.22% | 0.81% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cleveland-Cliffs | $19.19 billion | 0.37 | -$754.00 million | ($3.40) | -4.20 |
| Usinas Siderurgicas de Minas Gerais | $4.80 billion | 0.15 | -$27.06 million | ($0.49) | -2.66 |
Usinas Siderurgicas de Minas Gerais has lower revenue, but higher earnings than Cleveland-Cliffs. Cleveland-Cliffs is trading at a lower price-to-earnings ratio than Usinas Siderurgicas de Minas Gerais, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Cleveland-Cliffs and Usinas Siderurgicas de Minas Gerais, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cleveland-Cliffs | 2 | 5 | 3 | 0 | 2.10 |
| Usinas Siderurgicas de Minas Gerais | 0 | 1 | 0 | 0 | 2.00 |
Cleveland-Cliffs presently has a consensus price target of $13.80, indicating a potential downside of 3.38%. Given Cleveland-Cliffs’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Cleveland-Cliffs is more favorable than Usinas Siderurgicas de Minas Gerais.
Institutional & Insider Ownership
67.7% of Cleveland-Cliffs shares are held by institutional investors. 1.8% of Cleveland-Cliffs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Cleveland-Cliffs beats Usinas Siderurgicas de Minas Gerais on 9 of the 14 factors compared between the two stocks.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.
About Usinas Siderurgicas 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.
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