Gerdau SA ADR (GGB)vsSouthern Copper Corporation (SCCO)
GGB
Gerdau SA ADR
$4.38
-0.23%
BASIC MATERIALS · Cap: $8.85B
SCCO
Southern Copper Corporation
$167.27
+1.14%
BASIC MATERIALS · Cap: $149.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Gerdau SA ADR generates 311% more annual revenue ($70.25B vs $17.11B). SCCO leads profitability with a 37.2% profit margin vs 3.9%. SCCO appears more attractively valued with a PEG of 5.41. SCCO earns a higher WallStSmart Score of 65/100 (B-).
GGB
Buy58
out of 100
Grade: C
SCCO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.5%
Fair Value
$18.48
Current Price
$4.38
$14.10 discount
Margin of Safety
-79.2%
Fair Value
$117.56
Current Price
$167.27
$49.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Earnings expanding 46.1% YoY
Every $100 of equity generates 47 in profit
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 59.9%
Revenue surging 39.1% year-over-year
Earnings expanding 66.0% YoY
Safe zone — low bankruptcy risk
Areas to Watch
3.9% revenue growth
ROE of 3.1% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Trading at 10.4x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GGB
The strongest argument for GGB centers on Price/Book, Debt/Equity, P/E Ratio.
Bull Case : SCCO
The strongest argument for SCCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 37.2% and operating margin at 59.9%. Revenue growth of 39.1% demonstrates continued momentum.
Bear Case : GGB
The primary concerns for GGB are Revenue Growth, Return on Equity, Profit Margin. Thin 3.9% margins leave little buffer for downturns.
Bear Case : SCCO
The primary concerns for SCCO are Price/Book, PEG Ratio.
Key Dynamics to Monitor
GGB profiles as a value stock while SCCO is a growth play — different risk/reward profiles.
SCCO carries more volatility with a beta of 1.13 — expect wider price swings.
SCCO is growing revenue faster at 39.1% — sustainability is the question.
SCCO generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
SCCO scores higher overall (65/100 vs 58/100), backed by strong 37.2% margins and 39.1% revenue growth. GGB offers better value entry with a 76.5% margin of safety. Both earn "Strong 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 →Southern Copper Corporation
BASIC MATERIALS · COPPER · USA
Southern Copper Corporation is engaged in the extraction, exploration, smelting and refining of copper and other minerals in Peru, Mexico, Argentina, Ecuador and Chile.
Visit Website →Compare with Other STEEL Stocks
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