WallStSmart

Gerdau SA ADR (GGB)vsArcelorMittal SA ADR (MT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gerdau SA ADR generates 14% more annual revenue ($69.86B vs $61.35B). MT leads profitability with a 5.1% profit margin vs 2.0%. MT appears more attractively valued with a PEG of 0.66. MT earns a higher WallStSmart Score of 62/100 (C+).

GGB

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 5.0Value: 4.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.93

MT

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 5.0Value: 10.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GGBSignificantly Overvalued (-394.3%)

Margin of Safety

-394.3%

Fair Value

$0.88

Current Price

$3.26

$2.38 premium

UndervaluedFair: $0.88Overvalued
MTUndervalued (+65.3%)

Margin of Safety

+65.3%

Fair Value

$192.35

Current Price

$47.76

$144.59 discount

UndervaluedFair: $192.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GGB3 strengths · Avg: 9.3/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
90.0%10/10

Revenue surging 90.0% year-over-year

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

MT5 strengths · Avg: 8.8/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

EPS GrowthGrowth
32.8%8/10

Earnings expanding 32.8% YoY

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B in free cash flow

Areas to Watch

GGB4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Return on EquityProfitability
2.5%3/10

ROE of 2.5% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

Operating MarginProfitability
-5.1%1/10

Operating margin of -5.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : GGB

The strongest argument for GGB centers on Price/Book, Revenue Growth, Free Cash Flow. Revenue growth of 90.0% demonstrates continued momentum.

Bull Case : MT

The strongest argument for MT centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bear Case : GGB

The primary concerns for GGB are P/E Ratio, Return on Equity, Profit Margin. Thin 2.0% margins leave little buffer for downturns.

Bear Case : MT

The primary concerns for MT are Revenue Growth, Return on Equity, Profit Margin.

Key Dynamics to Monitor

GGB profiles as a hypergrowth stock while MT is a value play — different risk/reward profiles.

MT carries more volatility with a beta of 1.67 — expect wider price swings.

GGB is growing revenue faster at 90.0% — sustainability is the question.

MT generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

MT scores higher overall (62/100 vs 42/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Gerdau SA ADR

BASIC MATERIALS · STEEL · USA

Gerdau SA is a leading Brazilian steel manufacturer and a prominent player in the Americas’ long steel segment, notably recognized through its American Depositary Receipts (ADRs). The company excels in producing a diverse range of steel products, serving critical industries such as construction, automotive, and manufacturing. Gerdau is committed to innovation and sustainability, employing advanced technologies to optimize operations and reduce environmental impact. With its robust operational network and focus on quality, Gerdau is strategically positioned to capitalize on emerging growth opportunities within the global steel industry.

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ArcelorMittal SA ADR

BASIC MATERIALS · STEEL · USA

ArcelorMittal owns and operates steelmaking and mining facilities in Europe, North and South America, Asia and Africa. The company is headquartered in Luxembourg City, Luxembourg.

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