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GGB vs HBM

GGB
Gerdau S.A.
NEUTRAL
Price
$4.32
Market Cap
$8.5B
Sector
Basic Materials
AI Confidence
80%
HBM
Hudbay Minerals Inc.
BULLISH
Price
$24.41
Market Cap
$9.7B
Sector
Basic Materials
AI Confidence
75%

Valuation

P/E Ratio
GGB
30.86
HBM
16.95
Forward P/E
GGB
7.95
HBM
11.22
P/B Ratio
GGB
0.79
HBM
3.0
P/S Ratio
GGB
0.12
HBM
4.39
EV/EBITDA
GGB
2.04
HBM
10.19

Profitability

Gross Margin
GGB
11.4%
HBM
53.5%
Operating Margin
GGB
7.03%
HBM
29.76%
Profit Margin
GGB
1.98%
HBM
25.71%
ROE
GGB
2.53%
HBM
19.2%
ROA
GGB
4.15%
HBM
6.04%

Growth

Revenue Growth
GGB
0.9%
HBM
25.3%
Earnings Growth
GGB
--
HBM
544.9%

Financial Health

Debt/Equity
GGB
0.29
HBM
0.36
Current Ratio
GGB
2.89
HBM
0.95
Quick Ratio
GGB
1.33
HBM
0.77

Dividends

Dividend Yield
GGB
2.63%
HBM
0.06%
Payout Ratio
GGB
89.36%
HBM
0.99%

AI Verdict

GGB NEUTRAL

GGB presents a dichotomy between a strong balance sheet and poor operational performance. The Piotroski F-Score of 4/9 indicates stable but mediocre financial health, while the current price of $4.32 sits slightly above the Graham Number ($4.14) and significantly above the growth-based intrinsic value ($0.98). While the company maintains low leverage and high liquidity, consistent earnings misses (0/4 in the last year) and thin profit margins suggest fundamental weakness despite recent price momentum.

Strengths
Very low Debt/Equity ratio (0.29) indicating conservative leverage
Strong liquidity with a Current Ratio of 2.89
Attractive Price-to-Book (0.79) and Price-to-Sales (0.12) ratios
Risks
Consistent earnings disappointments (0/4 beats in last 4 quarters)
Extremely thin profit margins (1.98%)
Unsustainable dividend payout ratio (89.36%)
HBM BULLISH

Hudbay Minerals exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and strong profitability metrics that significantly outperform sector averages. While the current price of $24.41 sits above the Graham Number ($16.24), it remains well below the growth-based intrinsic value of $42.48, suggesting significant upside. The company is experiencing explosive earnings growth (544.9% YoY) and maintains a healthy Debt/Equity ratio of 0.36. However, a very bearish technical trend (10/100) and tight liquidity (Current Ratio 0.95) serve as primary cautionary factors.

Strengths
Explosive YoY earnings growth of 544.90%
Strong profitability with a 53.50% gross margin and 19.20% ROE
Low leverage with a Debt/Equity ratio of 0.36
Risks
Severely bearish technical trend (10/100) indicating short-term price pressure
Liquidity risk with a Current Ratio of 0.95 and Quick Ratio of 0.77
High volatility in quarterly earnings surprises

Compare Another Pair

GGB vs HBM: Head-to-Head Comparison

This page compares Gerdau S.A. (GGB) and Hudbay Minerals Inc. (HBM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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