Head-To-Head Analysis: General Steel (OTCMKTS:GSIH) & Ternium (NYSE:TX)

General Steel (OTCMKTS:GSIH) and Ternium (NYSE:TX) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and price targets for General Steel and Ternium, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Steel	0	0	0	0	0.00
Ternium	1	1	1	0	2.00

Ternium has a consensus price target of $30.67, indicating a potential upside of 2.23%. Given Ternium’s stronger consensus rating and higher possible upside, analysts clearly believe Ternium is more favorable than General Steel.

Volatility & Risk

General Steel has a beta of -0.65, meaning that its stock price is 165% less volatile than the S&P 500. Comparatively, Ternium has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Profitability

This table compares General Steel and Ternium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Steel	N/A	N/A	N/A
Ternium	-2.07%	0.29%	0.20%

Valuation and Earnings

This table compares General Steel and Ternium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Steel	N/A	N/A	N/A	N/A	N/A
Ternium	$17.65 billion	0.34	-$53.67 million	($1.78)	-16.85

General Steel has higher earnings, but lower revenue than Ternium.

Institutional and Insider Ownership

12.0% of Ternium shares are owned by institutional investors. 53.3% of General Steel shares are owned by company insiders. Comparatively, 0.0% of Ternium shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Ternium beats General Steel on 8 of the 10 factors compared between the two stocks.

About General Steel

General Steel Holdings, Inc. engages in the business of cell research, development, storage, and cell culture service in the People's Republic of China. General Steel Holdings, Inc. was incorporated in 2002 and is headquartered in Beijing, the People's Republic of China.

About Ternium

Ternium S.A., together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products. Its Mining segment sells iron ore and pellets. The Usiminas segment offers iron ore extraction, steel transformation, and production of capital goods and logistics; and manufactures and sells various products and raw materials, such as flat steel, iron ore, and stamped steel parts for the automotive industry and products for the civil construction and capital goods industry. It also provides medical and social; scrap; renewable energy; and engineering and other services, as well as operates as a distribution company. In addition, the company engages in the exploration, exploitation, and pelletizing of iron ore. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.