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

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Usinas Siderurgicas de Minas Gerais and Fortuna Mining, 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
Fortuna Mining	0	2	3	0	2.60

Fortuna Mining has a consensus target price of $14.00, suggesting a potential upside of 13.64%. Given Fortuna Mining’s stronger consensus rating and higher possible upside, analysts clearly believe Fortuna Mining is more favorable than Usinas Siderurgicas de Minas Gerais.

Volatility & Risk

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

Profitability

This table compares Usinas Siderurgicas de Minas Gerais and Fortuna Mining’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%	5.60%	3.74%
Fortuna Mining	31.99%	17.48%	12.88%

Valuation and Earnings

This table compares Usinas Siderurgicas de Minas Gerais and Fortuna Mining”s gross 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	0.17	-$551.30 million	($0.34)	-4.29
Fortuna Mining	$1.18 billion	3.08	$287.47 million	$1.18	10.44

Fortuna Mining 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 Fortuna Mining, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

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

Summary

Fortuna Mining 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 Fortuna Mining

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.