Contrasting Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) and Fortuna Mining (NYSE:FSM)

by · The Markets Daily

Fortuna Mining (NYSE:FSMGet Free Report) and Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZYGet Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Fortuna Mining and Usinas Siderurgicas de Minas Gerais”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Fortuna Mining$1.18 billion3.00$287.47 million$1.1810.15
Usinas Siderurgicas de Minas Gerais$4.70 billion0.17-$551.30 million($0.34)-4.41

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

Risk and Volatility

Fortuna Mining has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Usinas Siderurgicas de Minas Gerais has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

33.8% of Fortuna Mining shares are owned by institutional investors. 1.0% of Fortuna Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Fortuna Mining31.99%17.48%12.88%
Usinas Siderurgicas de Minas Gerais-8.87%5.49%3.68%

Analyst Recommendations

This is a summary of recent recommendations for Fortuna Mining and Usinas Siderurgicas de Minas Gerais, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Fortuna Mining01402.80
Usinas Siderurgicas de Minas Gerais01002.00

Fortuna Mining currently has a consensus price target of $14.00, indicating a potential upside of 16.91%. Given Fortuna Mining’s stronger consensus rating and higher possible upside, equities analysts clearly believe Fortuna Mining is more favorable than Usinas Siderurgicas de Minas Gerais.

Summary

Fortuna Mining beats Usinas Siderurgicas de Minas Gerais on 12 of the 14 factors compared between the two stocks.

About Fortuna Mining

(Get Free Report)

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

About Usinas Siderurgicas de Minas Gerais

(Get Free Report)

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.