Critical Analysis: SSAB SVENSKT ST/ADR (OTCMKTS:SSAAY) versus EVRAZ (OTCMKTS:EVRZF)

EVRAZ (OTCMKTS:EVRZF) and SSAB SVENSKT ST/ADR (OTCMKTS:SSAAY) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, dividends, valuation and analyst recommendations.

Valuation and Earnings

EVRAZ has higher revenue and earnings than SSAB SVENSKT ST/ADR. EVRAZ is trading at a lower price-to-earnings ratio than SSAB SVENSKT ST/ADR, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

EVRAZ has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, SSAB SVENSKT ST/ADR has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Summary

SSAB SVENSKT ST/ADR beats EVRAZ on 5 of the 9 factors compared between the two stocks.

EVRAZ Company Profile

EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. The company operates through four segments: Steel; Steel, North America; Coal; and Other Operations. Its products include construction products, industrial products, railway products, vanadium products, and pipes, as well as raw materials, such as iron ore, coal, and limestone products. The company is involved in the extraction of vanadium ore; iron ore mining and enrichment; and coal mining and enrichment, as well as energy-generation, shipping, and railway transportation businesses. It has operations in the Commonwealth of Independent States, America, Asia, Europe, Africa, and internationally. The company was founded in 1992 and is headquartered in Moscow, Russia. EVRAZ plc is a subsidiary of Lanebrook Limited.

SSAB SVENSKT ST/ADR Company Profile

SSAB AB (publ) produces and sells steel products in Sweden. It operates through five segments: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor, and Ruukki Construction. The company offers wear steels for payload and service life; structural steel; pre-hardened tool steel; and protection plates, as well as quenched and tempered steels, and hot-rolled advanced high-strength steel products. It also provides hot-rolled plates, hot-rolled strips, cold-rolled strips, metal-coated strips, color-coated strips, tubes and sections, and infrastructure products. In addition, the company offers heavy plates and coils; engineering steel and long products comprising beams, merchant bars, and hollow sections; stainless steel and non-ferrous metals primarily comprising aluminum and copper; steel roofs, rainwater systems, and accessories for residential construction; and components that include sandwich panels, load-bearing sheets, and façade claddings for non-residential construction. Further, it offers frame solutions used in non-residential buildings; bridges; design and installation services; parts and kits and wear parts; and prefabrication, engineering and processing, and value added services. It also exports its products primarily in Europe. The company markets its steel products under the Strenx, Hardox, Docol, GreenCoat, Toolox, Armox, SSAB Boron, SSAB Domex, SSAB Form, SSAB Laser, SSAB Weathering and Cor-Ten, and SSAB Multisteel brands. It provides its products for customers in the heavy transport, construction building and infrastructure, automotive, industrial, construction machinery, energy, and material handling, as well as service centers. SSAB AB (publ) was founded in 1978 and is headquartered in Stockholm, Sweden.

www.ferroalloynet.com