Gerdau SA ADR (GGB)vsReliance Steel & Aluminum Co (RS)
GGB
Gerdau SA ADR
$3.26
-1.21%
BASIC MATERIALS · Cap: $6.44B
RS
Reliance Steel & Aluminum Co
$290.56
-1.44%
BASIC MATERIALS · Cap: $15.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 389% more annual revenue ($69.86B vs $14.29B). RS leads profitability with a 5.2% profit margin vs 2.0%. RS appears more attractively valued with a PEG of 2.29. RS earns a higher WallStSmart Score of 59/100 (C).
GGB
Hold42
out of 100
Grade: D
RS
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-394.3%
Fair Value
$0.88
Current Price
$3.26
$2.38 premium
Margin of Safety
+15.5%
Fair Value
$426.32
Current Price
$290.56
$135.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 90.0% year-over-year
Generating 1.7B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Moderate valuation
ROE of 2.5% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
5.2% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : RS
The strongest argument for RS centers on Altman Z-Score, Debt/Equity, Price/Book. Revenue growth of 11.9% demonstrates continued momentum.
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 : RS
The primary concerns for RS are PEG Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
GGB profiles as a hypergrowth stock while RS is a value play — different risk/reward profiles.
GGB carries more volatility with a beta of 0.92 — expect wider price swings.
GGB is growing revenue faster at 90.0% — sustainability is the question.
GGB generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
RS scores higher overall (59/100 vs 42/100) and 11.9% revenue growth. 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.
Visit Website →Reliance Steel & Aluminum Co
BASIC MATERIALS · STEEL · USA
Reliance Steel & Aluminum Co. is a metal service center company. The company is headquartered in Los Angeles, California.
Visit Website →Compare with Other STEEL Stocks
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