Analyzing Aris Mining (NYSE:ARIS) and Gerdau (NYSE:GGB)

Gerdau (NYSE:GGB) and Aris Mining (NYSE:ARIS) are both mid-cap materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Gerdau and Aris Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gerdau	0	6	2	1	2.44
Aris Mining	1	0	3	0	2.50

Gerdau currently has a consensus target price of $5.57, indicating a potential upside of 12.74%. Given Gerdau’s higher probable upside, analysts clearly believe Gerdau is more favorable than Aris Mining.

Profitability

This table compares Gerdau and Aris Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gerdau	3.37%	7.97%	5.18%
Aris Mining	22.43%	22.82%	13.55%

Volatility & Risk

Gerdau has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Aris Mining has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500.

Insider and Institutional Ownership

1.5% of Gerdau shares are owned by institutional investors. Comparatively, 39.7% of Aris Mining shares are owned by institutional investors. 0.0% of Gerdau shares are owned by company insiders. Comparatively, 37.8% of Aris Mining shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Gerdau and Aris Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gerdau	$12.51 billion	0.78	$248.41 million	$0.23	21.50
Aris Mining	$927.66 million	4.32	$78.35 million	$1.38	14.06

Gerdau has higher revenue and earnings than Aris Mining. Aris Mining is trading at a lower price-to-earnings ratio than Gerdau, indicating that it is currently the more affordable of the two stocks.

Summary

Aris Mining beats Gerdau on 9 of the 15 factors compared between the two stocks.

About Gerdau

Gerdau S.A., together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets. In addition, the company offers flat products, such as hot-rolled steel coils and heavy plates; and resells flat steel products. Further, it operates mines that produce iron ore located in the Brazilian state of Minas Gerais. The company sells its products through independent distributors, direct sales from the mills, and its retail network. Gerdau S.A. was founded in 1901 and is based in São Paulo, Brazil.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.