GGB vs CAT vs NUE vs RS vs VMC

For growth investors, Vulcan Materials Company (VMC) is the stronger pick with 6.

9% revenue growth year-over-year, versus 3. 3% for Reliance Steel & Aluminum Co. (RS). Reliance Steel & Aluminum Co. (RS) offers the better valuation at 26. 4x trailing P/E (18. 8x forward), making it the more compelling value choice. Analysts rate Gerdau S. A. (GGB) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Reliance Steel & Aluminum Co.

(RS) is the cheapest at 26. 4x versus Caterpillar Inc. at 47. 6x. On forward P/E, Gerdau S. A. is actually cheaper at 1. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Nucor Corporation wins at 0. 61x versus Vulcan Materials Company's 2. 35x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +282. 5%, compared to +14. 5% for Gerdau S. A. (GGB). Over 10 years, the gap is even starker: CAT returned +1230% versus VMC's +158. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Reliance Steel & Aluminum Co.

(RS) is the lower-risk stock at 0. 76β versus Caterpillar Inc. 's 1. 56β — meaning CAT is approximately 106% more volatile than RS relative to the S&P 500. On balance sheet safety, Reliance Steel & Aluminum Co. (RS) carries a lower debt/equity ratio of 28% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Vulcan Materials Company (VMC) is pulling ahead at 6.

9% versus 3. 3% for Reliance Steel & Aluminum Co. (RS). On earnings-per-share growth, the picture is similar: Vulcan Materials Company grew EPS 18. 5% year-over-year, compared to -68. 3% for Gerdau S. A.. Over a 3-year CAGR, CAT leads at 4. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Vulcan Materials Company (VMC) is the more profitable company, earning 13.

6% net margin versus 2. 0% for Gerdau S. A. — meaning it keeps 13. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VMC leads at 20. 1% versus 7. 2% for RS. At the gross margin level — before operating expenses — CAT leads at 32. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Nucor Corporation (NUE) is the more undervalued stock at a PEG of 0. 61x versus Vulcan Materials Company's 2. 35x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Gerdau S. A. (GGB) trades at 1. 8x forward P/E versus 37. 0x for Caterpillar Inc. — 35. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VMC: 13. 2% to $327. 00.

All stocks in this comparison pay dividends.

Gerdau S. A. (GGB) offers the highest yield at 2. 7%, versus 0. 7% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, Reliance Steel & Aluminum Co.

(RS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 76), 1. 3% yield, +463. 9% 10Y return). Both have compounded well over 10 years (RS: +463. 9%, GGB: +338. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (GGB (Basic Materials) and CAT (Industrials) and NUE (Basic Materials) and RS (Basic Materials) and VMC (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.