Gerdau SA ADR (GGB)vsRio Tinto ADR (RIO)
GGB
Gerdau SA ADR
$4.94
-1.98%
BASIC MATERIALS · Cap: $9.74B
RIO
Rio Tinto ADR
$101.10
+1.46%
BASIC MATERIALS · Cap: $158.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 12% more annual revenue ($69.20B vs $61.79B). RIO leads profitability with a 19.6% profit margin vs 2.4%. RIO appears more attractively valued with a PEG of 5.69. RIO earns a higher WallStSmart Score of 64/100 (C+).
GGB
Buy52
out of 100
Grade: C-
RIO
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.4%
Fair Value
$18.40
Current Price
$4.94
$13.46 discount
Margin of Safety
+29.4%
Fair Value
$138.95
Current Price
$101.10
$37.85 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 28.1%
15.5% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
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
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 19.6% and operating margin at 28.1%. Revenue growth of 15.5% 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.
Key Dynamics to Monitor
GGB profiles as a value stock while RIO is a growth 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 15.5% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RIO scores higher overall (64/100 vs 52/100), backed by strong 19.6% margins and 15.5% revenue growth. GGB offers better value entry with a 76.4% 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 is a leading Brazilian steel manufacturer and a key player in the long steel sector across the Americas, represented by its American Depositary Receipts (ADRs). The company offers an extensive range of steel products catering to essential industries, including construction, automotive, and manufacturing, with a strong emphasis on innovation and sustainability. Leveraging advanced technologies, Gerdau is committed to enhancing operational efficiency while minimizing its environmental footprint. With a resilient operational structure and a focus on high-quality standards, Gerdau is well-positioned to seize growth opportunities in the evolving global steel industry.
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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