GGB vs. KGC, RGLD, AXTA, FMC, PAAS, TX, OLN, CMC, ATI, and WFG
Should you be buying Gerdau stock or one of its competitors? The main competitors of Gerdau include Kinross Gold (KGC), Royal Gold (RGLD), Axalta Coating Systems (AXTA), FMC (FMC), Pan American Silver (PAAS), Ternium (TX), Olin (OLN), Commercial Metals (CMC), ATI (ATI), and West Fraser Timber (WFG). These companies are all part of the "basic materials" sector.
Gerdau (NYSE:GGB) and Kinross Gold (NYSE:KGC) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, media sentiment, analyst recommendations, profitability, earnings, dividends, valuation and community ranking.
1.5% of Gerdau shares are held by institutional investors. Comparatively, 63.7% of Kinross Gold shares are held by institutional investors. 0.0% of Gerdau shares are held by insiders. Comparatively, 1.0% of Kinross Gold shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Kinross Gold received 299 more outperform votes than Gerdau when rated by MarketBeat users. However, 58.80% of users gave Gerdau an outperform vote while only 57.72% of users gave Kinross Gold an outperform vote.
Gerdau has higher revenue and earnings than Kinross Gold. Gerdau is trading at a lower price-to-earnings ratio than Kinross Gold, indicating that it is currently the more affordable of the two stocks.
Gerdau has a net margin of 10.80% compared to Kinross Gold's net margin of 9.82%. Gerdau's return on equity of 15.05% beat Kinross Gold's return on equity.
In the previous week, Kinross Gold had 14 more articles in the media than Gerdau. MarketBeat recorded 20 mentions for Kinross Gold and 6 mentions for Gerdau. Kinross Gold's average media sentiment score of 0.56 beat Gerdau's score of 0.09 indicating that Kinross Gold is being referred to more favorably in the news media.
Gerdau currently has a consensus price target of $5.55, indicating a potential upside of 51.23%. Kinross Gold has a consensus price target of $6.44, indicating a potential downside of 1.35%. Given Gerdau's higher probable upside, analysts clearly believe Gerdau is more favorable than Kinross Gold.
Gerdau has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Gerdau pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%. Kinross Gold pays an annual dividend of $0.12 per share and has a dividend yield of 1.8%. Gerdau pays out 10.0% of its earnings in the form of a dividend. Kinross Gold pays out 35.3% 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. Gerdau is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Gerdau beats Kinross Gold on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GGB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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