Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY – Get Free Report) and Olympic Steel (NASDAQ:ZEUS – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Risk & Volatility
Usinas Siderurgicas de Minas Gerais has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Olympic Steel has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.
Institutional & Insider Ownership
87.1% of Olympic Steel shares are owned by institutional investors. 13.8% of Olympic Steel shares are owned by 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Usinas Siderurgicas de Minas Gerais | 0 | 1 | 0 | 0 | 2.00 |
| Olympic Steel | 1 | 0 | 1 | 0 | 2.00 |
Olympic Steel has a consensus target price of $38.00, suggesting a potential upside of 11.83%. Given Olympic Steel’s higher probable upside, analysts plainly believe Olympic Steel is more favorable than Usinas Siderurgicas de Minas Gerais.
Profitability
This table compares Usinas Siderurgicas de Minas Gerais and Olympic Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Usinas Siderurgicas de Minas Gerais | -12.91% | 1.22% | 0.81% |
| Olympic Steel | 0.73% | 2.12% | 1.15% |
Valuation and Earnings
This table compares Usinas Siderurgicas de Minas Gerais and Olympic Steel”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Usinas Siderurgicas de Minas Gerais | $4.80 billion | 0.12 | -$27.06 million | ($0.49) | -2.12 |
| Olympic Steel | $1.90 billion | 0.20 | $22.98 million | $1.17 | 29.04 |
Olympic Steel has lower revenue, but higher earnings than Usinas Siderurgicas de Minas Gerais. Usinas Siderurgicas de Minas Gerais is trading at a lower price-to-earnings ratio than Olympic Steel, indicating that it is currently the more affordable of the two stocks.
Summary
Olympic Steel beats Usinas Siderurgicas de Minas Gerais on 12 of the 13 factors compared between the two stocks.
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.
About Olympic Steel
Olympic Steel, Inc. processes, distributes, and stores metal products primarily in the United States, Canada, and Mexico. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products. The company offers stainless steel and aluminum coil and sheet products, angles, rounds, and flat bars; alloy, heat treated, and abrasion resistant coils, sheets and plates; coated metals, including galvanized, galvannealed, electro galvanized, advanced high strength steels, aluminized, and automotive grades of steel; commercial quality, advanced high strength steel, drawing steel, and automotive grades cold rolled steel coil and sheet products; hot rolled carbon comprising hot rolled coil, pickled and oiled sheet and plate steel products, automotive grades, advanced high strength steels, and high strength low alloys; tube, pipe, and bar products, including round, square, and rectangular mechanical and structural tubing; hydraulic and stainless tubing; boiler tubing; carbon, stainless, and aluminum pipes; valves and fittings; and tin mill products, such as electrolytic tinplate, electrolytic chromium coated steel, and black plates. The company also provides cutting-to-length, slitting, shearing, blanking, tempering, stretcher-leveling, plate and laser processing, forming and machining, tube processing, finishing, and fabrication services, as well as value-added services, such as saw cutting, laser cutting, beveling, threading, and grooving services. It serves metal consuming industries, such as manufacturers and fabricators of transportation and material handling lift equipment, construction, mining and farm equipment, agriculture equipment, storage tanks, environmental and energy generation equipment, automobiles, food service, and electrical equipment, as well as general and plate fabricators, and metals service centers through direct sales force. Olympic Steel, Inc. was founded in 1954 and is based in Highland Hills, Ohio.
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