Gerdau SA ADR (GGB)vsRio Tinto ADR (RIO)
GGB
Gerdau SA ADR
$4.59
-2.55%
BASIC MATERIALS · Cap: $9.35B
RIO
Rio Tinto ADR
$100.69
-4.47%
BASIC MATERIALS · Cap: $168.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 20% more annual revenue ($69.20B vs $57.64B). RIO leads profitability with a 17.3% profit margin vs 2.4%. RIO appears more attractively valued with a PEG of 5.69. RIO earns a higher WallStSmart Score of 54/100 (C-).
GGB
Buy52
out of 100
Grade: C-
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.5%
Fair Value
$18.53
Current Price
$4.59
$13.94 discount
Margin of Safety
+24.5%
Fair Value
$129.94
Current Price
$100.69
$29.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Earnings expanding 37.9% YoY
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Moderate valuation
ROE of 3.1% — below average capital efficiency
2.4% margin — thin
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : GGB
The strongest argument for GGB centers on Price/Book, Debt/Equity, EPS Growth.
Bull Case : RIO
The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : GGB
The primary concerns for GGB are P/E Ratio, Return on Equity, Profit Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GGB profiles as a value stock while RIO is a mature play — different risk/reward profiles.
GGB carries more volatility with a beta of 0.90 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (54/100 vs 52/100), backed by strong 17.3% margins and 14.6% revenue growth. GGB offers better value entry with a 76.5% margin of safety. Both earn "Buy" and "Buy" 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, a leading Brazilian steel producer, is a key player in the long steel segment across the Americas, prominently represented through its American Depositary Receipts (ADRs). The company offers a diverse portfolio of steel products tailored for crucial sectors including construction, automotive, and manufacturing. Gerdau places a strong emphasis on innovation and sustainability, leveraging advanced technologies to enhance operational efficiency while minimizing its environmental footprint. With a well-established operational network and a commitment to quality, Gerdau is strategically positioned to seize emerging growth opportunities in the evolving global steel market.
Visit Website →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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