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 companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends, media sentiment and institutional ownership.

Which has better earnings and 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	10.34
Tenaris	$12.52B	1.66	$2.04B	$3.68	9.72

Which has more volatility & risk, GGB or TS?

Gerdau has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Is GGB or TS a better dividend stock?

Gerdau pays an annual dividend of $0.07 per share and has a dividend yield of 2.3%. Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 6.3%. Gerdau pays out 24.1% 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.

Do insiders & institutionals believe in GGB or TS?

1.5% of Gerdau shares are owned by institutional investors. Comparatively, 10.5% of Tenaris shares are owned by institutional investors. 0.0% of Gerdau shares are owned by insiders. Comparatively, 0.2% of Tenaris shares are owned 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.

Does the media prefer GGB or TS?

In the previous week, Tenaris had 3 more articles in the media than Gerdau. MarketBeat recorded 7 mentions for Tenaris and 4 mentions for Gerdau. Gerdau's average media sentiment score of 1.28 beat Tenaris' score of 1.00 indicating that Gerdau is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gerdau	2 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Tenaris	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer GGB or TS?

Gerdau currently has a consensus target price of $3.80, indicating a potential upside of 26.67%. Tenaris has a consensus target price of $43.60, indicating a potential upside of 21.92%. Given Gerdau's stronger consensus rating and higher possible 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)	1 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.44

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%

Summary

Tenaris beats Gerdau on 12 of the 18 factors compared between the two stocks.