Head to Head Contrast: Ferrexpo (OTCMKTS:FEEXF) vs. Gerdau (NYSE:GGB)

Ferrexpo (OTCMKTS:FEEXF) and Gerdau (NYSE:GGB) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

13.2% of Ferrexpo shares are owned by institutional investors. Comparatively, 1.5% of Gerdau shares are owned by institutional investors. 0.0% of Gerdau shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ferrexpo and Gerdau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferrexpo	N/A	N/A	N/A
Gerdau	7.88%	8.43%	5.63%

Valuation and Earnings

This table compares Ferrexpo and Gerdau”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferrexpo	N/A	N/A	N/A	N/A	N/A
Gerdau	$64.60 billion	0.10	$1.50 billion	$0.61	5.11

Gerdau has higher revenue and earnings than Ferrexpo.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ferrexpo and Gerdau, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferrexpo	0	0	0	0	N/A
Gerdau	0	0	2	0	3.00

Gerdau has a consensus target price of $5.00, indicating a potential upside of 60.51%. Given Gerdau’s higher probable upside, analysts clearly believe Gerdau is more favorable than Ferrexpo.

Summary

Gerdau beats Ferrexpo on 7 of the 8 factors compared between the two stocks.

About Ferrexpo

Ferrexpo plc, together with its subsidiaries, mines for, develops, processes, produces, markets, exports, and sells iron ore pellets to the metallurgical industry. It operates two mines and a processing plant near Kremenchug in Ukraine; a port in Odessa; a fleet of vessels operating on the Rhine and Danube waterways; and an ocean-going vessel, which provides top-off services. The company also offers finance, management, procurement, trading, transportation, marketing, shipping, barging, bunker, and port services. It has operation in Turkey, rest of Europe, China, South East Asia, North East Asia, the Middle East, North Africa, and North America. The company was incorporated in 2005 and is headquartered in Baar, Switzerland.

About Gerdau

Gerdau S.A., together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets. In addition, the company offers flat products, such as hot-rolled steel coils and heavy plates; and resells flat steel products. Further, it operates mines that produce iron ore located in the Brazilian state of Minas Gerais. The company sells its products through independent distributors, direct sales from the mills, and its retail network. Gerdau S.A. was founded in 1901 and is based in São Paulo, Brazil.