Financial Contrast: Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) vs. Warrior Met Coal (NYSE:HCC)

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) and Warrior Met Coal (NYSE:HCC) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

92.3% of Warrior Met Coal shares are owned by institutional investors. 2.1% of Warrior Met Coal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Usinas Siderurgicas de Minas Gerais and Warrior Met Coal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Usinas Siderurgicas de Minas Gerais	0	1	0	0	2.00
Warrior Met Coal	0	4	4	0	2.50

Warrior Met Coal has a consensus price target of $103.83, suggesting a potential upside of 16.21%. Given Warrior Met Coal’s stronger consensus rating and higher probable upside, analysts plainly believe Warrior Met Coal is more favorable than Usinas Siderurgicas de Minas Gerais.

Volatility & Risk

Usinas Siderurgicas de Minas Gerais has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Warrior Met Coal has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Usinas Siderurgicas de Minas Gerais and Warrior Met Coal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Usinas Siderurgicas de Minas Gerais	-8.87%	5.49%	3.68%
Warrior Met Coal	13.05%	10.02%	7.84%

Earnings & Valuation

This table compares Usinas Siderurgicas de Minas Gerais and Warrior Met Coal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Usinas Siderurgicas de Minas Gerais	$4.70 billion	0.16	-$551.30 million	($0.34)	-4.05
Warrior Met Coal	$1.68 billion	2.81	$57.00 million	$4.16	21.48

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

Summary

Warrior Met Coal beats Usinas Siderurgicas de Minas Gerais on 12 of the 14 factors compared between the two stocks.

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.

About Warrior Met Coal

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.