TX vs. X, CMC, CRS, MT, STLD, CLF, KGC, RGLD, AU, and GGB
Should you be buying Ternium stock or one of its competitors? The main competitors of Ternium include United States Steel (X), Commercial Metals (CMC), Carpenter Technology (CRS), ArcelorMittal (MT), Steel Dynamics (STLD), Cleveland-Cliffs (CLF), Kinross Gold (KGC), Royal Gold (RGLD), AngloGold Ashanti (AU), and Gerdau (GGB). These companies are all part of the "basic materials" sector.
Ternium (NYSE:TX) and United States Steel (NYSE:X) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, community ranking, profitability, institutional ownership, media sentiment, earnings, dividends and analyst recommendations.
Ternium pays an annual dividend of $2.20 per share and has a dividend yield of 5.0%. United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Ternium pays out 65.3% of its earnings in the form of a dividend. United States Steel pays out 5.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Ternium has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, United States Steel has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.
Ternium currently has a consensus price target of $50.83, suggesting a potential upside of 16.64%. United States Steel has a consensus price target of $37.89, suggesting a potential upside of 1.25%. Given Ternium's stronger consensus rating and higher possible upside, equities analysts clearly believe Ternium is more favorable than United States Steel.
United States Steel received 456 more outperform votes than Ternium when rated by MarketBeat users. However, 66.18% of users gave Ternium an outperform vote while only 55.83% of users gave United States Steel an outperform vote.
12.0% of Ternium shares are held by institutional investors. Comparatively, 81.9% of United States Steel shares are held by institutional investors. 0.0% of Ternium shares are held by company insiders. Comparatively, 1.2% of United States Steel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
United States Steel has higher revenue and earnings than Ternium. United States Steel is trading at a lower price-to-earnings ratio than Ternium, indicating that it is currently the more affordable of the two stocks.
In the previous week, United States Steel had 6 more articles in the media than Ternium. MarketBeat recorded 12 mentions for United States Steel and 6 mentions for Ternium. Ternium's average media sentiment score of 1.16 beat United States Steel's score of 0.72 indicating that Ternium is being referred to more favorably in the media.
United States Steel has a net margin of 4.96% compared to Ternium's net margin of 3.53%. United States Steel's return on equity of 10.80% beat Ternium's return on equity.
Summary
United States Steel beats Ternium on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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