ThyssenKrupp (OTCMKTS:TYEKF – Get Free Report) and Gerdau (NYSE:GGB – Get Free Report) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares ThyssenKrupp 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 | |
| ThyssenKrupp | $38.01 billion | 0.18 | -$1.63 billion | ($1.42) | -7.70 |
| Gerdau | $69.10 billion | 0.10 | $846.59 million | $0.27 | 12.91 |
Profitability
This table compares ThyssenKrupp and Gerdau’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ThyssenKrupp | -2.34% | -7.71% | -2.73% |
| Gerdau | 4.81% | 6.51% | 4.29% |
Analyst Recommendations
This is a summary of current recommendations and price targets for ThyssenKrupp and Gerdau, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ThyssenKrupp | 0 | 0 | 0 | 0 | 0.00 |
| Gerdau | 1 | 2 | 1 | 0 | 2.00 |
Gerdau has a consensus price target of $3.80, indicating a potential upside of 9.04%. Given Gerdau’s stronger consensus rating and higher possible upside, analysts clearly believe Gerdau is more favorable than ThyssenKrupp.
Risk & Volatility
ThyssenKrupp has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Gerdau has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Insider & Institutional Ownership
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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Gerdau beats ThyssenKrupp on 13 of the 14 factors compared between the two stocks.
About ThyssenKrupp
thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.
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.
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