Gerdau (GGB) Competitors

Gerdau (NYSE:GGB) and Tenaris (NYSE:TS) are both steel works companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation, earnings and media sentiment.

Do institutionals and insiders hold more shares of GGB or TS?

1.5% of Gerdau shares are held by institutional investors. Comparatively, 10.5% of Tenaris shares are held by institutional investors. 0.0% of Gerdau shares are held by insiders. Comparatively, 0.2% of Tenaris shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has preferable earnings & valuation, GGB or TS?

Tenaris has higher revenue and earnings than Gerdau. Tenaris is trading at a lower price-to-earnings ratio than Gerdau, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gerdau	$12.43B	0.50	$846.59M	$0.29	10.72
Tenaris	$12.52B	1.62	$2.04B	$3.68	9.50

Does the media refer more to GGB or TS?

In the previous week, Tenaris had 5 more articles in the media than Gerdau. MarketBeat recorded 11 mentions for Tenaris and 6 mentions for Gerdau. Gerdau's average media sentiment score of 1.25 beat Tenaris' score of -0.22 indicating that Gerdau is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gerdau	4 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Tenaris	2 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is GGB or TS more profitable?

Tenaris has a net margin of 17.02% compared to Gerdau's net margin of 4.81%. Tenaris' return on equity of 11.71% beat Gerdau's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gerdau	4.81%	6.51%	4.29%
Tenaris	17.02%	11.71%	9.70%

Do analysts recommend GGB or TS?

Gerdau presently has a consensus price target of $3.80, suggesting a potential upside of 22.19%. Tenaris has a consensus price target of $41.80, suggesting a potential upside of 19.53%. Given Gerdau's stronger consensus rating and higher probable upside, equities research analysts clearly believe Gerdau is more favorable than Tenaris.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gerdau	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
Tenaris	2 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.33

Is GGB or TS a better dividend stock?

Gerdau pays an annual dividend of $0.08 per share and has a dividend yield of 2.6%. Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 6.4%. Gerdau pays out 27.6% of its earnings in the form of a dividend. Tenaris pays out 60.9% 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.

Which has more volatility & risk, GGB or TS?

Gerdau has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Tenaris beats Gerdau on 13 of the 18 factors compared between the two stocks.