Insteel Industries (IIIN) vs. Gerdau (GGB) Head to Head Survey

Insteel Industries (NASDAQ: IIIN) and Gerdau (NYSE:GGB) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Insteel Industries and Gerdau, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insteel Industries 0 1 1 0 2.50
Gerdau 0 0 7 0 3.00



Insteel Industries presently has a consensus target price of $34.00, suggesting a potential upside of 4.84%. Gerdau has a consensus target price of $4.00, suggesting a potential upside of 4.71%. Given Insteel Industries’ higher probable upside, research analysts clearly believe Insteel Industries is more favorable than Gerdau.

Institutional and Insider Ownership

83.2% of Insteel Industries shares are owned by institutional investors. Comparatively, 4.1% of Gerdau shares are owned by institutional investors. 5.7% of Insteel Industries shares are owned by company insiders. Comparatively, 0.0% of Gerdau 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.

Dividends

Insteel Industries pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Gerdau pays an annual dividend of $0.05 per share and has a dividend yield of 1.3%.

Profitability

This table compares Insteel Industries and Gerdau’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insteel Industries 6.18% 9.36% 7.21%
Gerdau -1.86% 4.01% 1.90%

Volatility & Risk

Insteel Industries has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Gerdau has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.

Earnings & Valuation

This table compares Insteel Industries and Gerdau’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insteel Industries $388.87 million 1.59 $22.54 million N/A N/A
Gerdau $11.57 billion 0.57 -$112.55 million N/A N/A

Insteel Industries has higher earnings, but lower revenue than Gerdau.

Summary

Insteel Industries beats Gerdau on 9 of the 14 factors compared between the two stocks.

About Insteel Industries

Insteel Industries, Inc., together with its subsidiaries, manufactures and markets steel wire reinforcing products for concrete construction applications. The company markets prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company's WWR engineered reinforcing product is used in nonresidential and residential construction. It produces a range of WWR products, including engineered structural mesh (ESM), concrete pipe reinforcement (CPR), and standard welded wire reinforcement (SWWR). ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures serving as a reinforcing solution for hot-rolled rebar; CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; and SWWR is a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. The company sells its products through sales representatives to the manufacturers of concrete products, distributors, rebar fabricators, and contractors primarily in the United States, as well as in Canada, Mexico, and Central and South America. Insteel Industries, Inc. was founded in 1953 and is headquartered in Mount Airy, North Carolina.

About Gerdau

Gerdau S.A. provides steel-related products and services worldwide. It operates through four segments: Brazil Operations, North America Operations, South America Operations, and Special Steel Operations. The company offers semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles, which are used primarily in the construction and manufacturing industries; and drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire meshes, nails, and clamps, as well as mines and produces iron ore. It also produces special steel products for use in auto parts, light and heavy vehicles, and agricultural machinery, as well as the oil and gas, wind energy, machinery and equipment, mining and rail, and others markets. In addition, the company offers flat products comprising hot rolled coils and heavy plates; and resells flat steel products. It sells its products through independent distributors, direct sales from the mills, and its retail network. The company was founded in 1901 and is based in Sao Paulo, Brazil. Gerdau S.A. is a subsidiary of Metalurgica Gerdau S.A.

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