GGB vs. RGLD, KGC, FMC, X, TX, AXTA, PAAS, CLF, OLN, and CMC
Should you be buying Gerdau stock or one of its competitors? The main competitors of Gerdau include Royal Gold (RGLD), Kinross Gold (KGC), FMC (FMC), United States Steel (X), Ternium (TX), Axalta Coating Systems (AXTA), Pan American Silver (PAAS), Cleveland-Cliffs (CLF), Olin (OLN), and Commercial Metals (CMC). These companies are all part of the "basic materials" sector.
Royal Gold (NASDAQ:RGLD) and Gerdau (NYSE:GGB) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk, media sentiment, earnings and community ranking.
Royal Gold pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Gerdau pays an annual dividend of $0.07 per share and has a dividend yield of 1.9%. Royal Gold pays out 44.0% of its earnings in the form of a dividend. Gerdau pays out 10.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Royal Gold has raised its dividend for 23 consecutive years. Gerdau is clearly the better dividend stock, given its higher yield and lower payout ratio.
83.7% of Royal Gold shares are owned by institutional investors. Comparatively, 1.5% of Gerdau shares are owned by institutional investors. 0.5% of Royal Gold shares are owned by insiders. Comparatively, 0.0% of Gerdau shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Gerdau has higher revenue and earnings than Royal Gold. Gerdau is trading at a lower price-to-earnings ratio than Royal Gold, indicating that it is currently the more affordable of the two stocks.
In the previous week, Royal Gold had 16 more articles in the media than Gerdau. MarketBeat recorded 21 mentions for Royal Gold and 5 mentions for Gerdau. Gerdau's average media sentiment score of 0.81 beat Royal Gold's score of 0.01 indicating that Royal Gold is being referred to more favorably in the media.
Royal Gold has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Gerdau has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.
Royal Gold presently has a consensus target price of $143.25, indicating a potential upside of 14.99%. Gerdau has a consensus target price of $5.55, indicating a potential upside of 53.74%. Given Royal Gold's higher probable upside, analysts clearly believe Gerdau is more favorable than Royal Gold.
Royal Gold received 466 more outperform votes than Gerdau when rated by MarketBeat users. Likewise, 70.42% of users gave Royal Gold an outperform vote while only 58.80% of users gave Gerdau an outperform vote.
Royal Gold has a net margin of 39.53% compared to Royal Gold's net margin of 10.80%. Royal Gold's return on equity of 15.05% beat Gerdau's return on equity.
Summary
Royal Gold beats Gerdau on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GGB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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