Reviewing Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) & JFE (OTCMKTS:JFEEF)

JFE (OTCMKTS:JFEEF) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Volatility & Risk

JFE has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for JFE and Usinas Siderurgicas de Minas Gerais, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFE	0	0	0	0	0.00
Usinas Siderurgicas de Minas Gerais	0	1	0	0	2.00

Profitability

This table compares JFE and Usinas Siderurgicas de Minas Gerais’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JFE	1.49%	2.76%	1.25%
Usinas Siderurgicas de Minas Gerais	1.66%	1.62%	1.08%

Valuation & Earnings

This table compares JFE and Usinas Siderurgicas de Minas Gerais”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFE	$31.91 billion	0.25	$606.33 million	$0.71	17.59
Usinas Siderurgicas de Minas Gerais	$4.80 billion	0.10	-$27.06 million	$0.05	17.56

JFE has higher revenue and earnings than Usinas Siderurgicas de Minas Gerais. Usinas Siderurgicas de Minas Gerais is trading at a lower price-to-earnings ratio than JFE, indicating that it is currently the more affordable of the two stocks.

Summary

JFE beats Usinas Siderurgicas de Minas Gerais on 7 of the 10 factors compared between the two stocks.

About JFE

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment handles the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

About Usinas Siderurgicas de Minas Gerais

Usinas Siderúrgicas de Minas Gerais S.A. manufactures and markets flat steel products in Brazil and internationally. The company operates through three segments: Mining and Logistics, Steel Metallurgy, and Steel Transformation. It extracts and process iron ore, such as pellet and sinter feed and, granulated iron ore; provides storage, handling, and road cargo transportation services; and operates highway and railway cargo terminals. It also manufactures and sells steel products; manufactures and installs equipment for various industries; and transforms cold-rolled coils into hot-dip galvanized coils. In addition, the company provides technology transfer services for steel industry; project management and services for civil construction and capital goods industry; road transportation of flat steel; and texturing and chrome plating of cylinders. It serves automotive, construction, distribution, energy, white line, oil and gas, and machines and equipment markets. Usinas Siderúrgicas de Minas Gerais S.A. was founded in 1956 and is headquartered in Belo Horizonte, Brazil.