Contrasting Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) & Newmont (NYSE:NEM)

Newmont (NYSE:NEM – Get Free Report) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Newmont and Usinas Siderurgicas de Minas Gerais”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmont $22.67 billion 5.37 $7.08 billion $7.92 14.59
Usinas Siderurgicas de Minas Gerais $4.70 billion 0.16 -$551.30 million ($0.34) -4.05

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Newmont and Usinas Siderurgicas de Minas Gerais, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmont 0 3 19 2 2.96
Usinas Siderurgicas de Minas Gerais 0 1 0 0 2.00

Newmont currently has a consensus target price of $134.26, suggesting a potential upside of 16.23%. Given Newmont’s stronger consensus rating and higher possible upside, analysts clearly believe Newmont is more favorable than Usinas Siderurgicas de Minas Gerais.

Insider & Institutional Ownership

68.8% of Newmont shares are owned by institutional investors. 0.1% of Newmont shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Newmont has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Newmont and Usinas Siderurgicas de Minas Gerais’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newmont 33.36% 29.10% 17.68%
Usinas Siderurgicas de Minas Gerais -8.87% 5.49% 3.68%

Summary

Newmont beats Usinas Siderurgicas de Minas Gerais on 14 of the 15 factors compared between the two stocks.

About Newmont

(Get Free Report)

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana. The company was founded in 1916 and is headquartered in Denver, Colorado.

About Usinas Siderurgicas de Minas Gerais

(Get Free Report)

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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