Ternium (TX) Competitors

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

Is TS or TX a better dividend stock?

Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 6.1%. Ternium pays an annual dividend of $3.60 per share and has a dividend yield of 11.8%. Tenaris pays out 68.3% of its earnings in the form of a dividend. Ternium pays out -202.2% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals and insiders believe in TS or TX?

10.5% of Tenaris shares are owned by institutional investors. Comparatively, 12.0% of Ternium shares are owned by institutional investors. 0.2% of Tenaris shares are owned by company insiders. Comparatively, 0.0% of Ternium shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Is TS or TX more profitable?

Tenaris has a net margin of 15.05% compared to Ternium's net margin of -2.07%. Tenaris' return on equity of 10.54% beat Ternium's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Tenaris	15.05%	10.54%	8.67%
Ternium	-2.07%	0.29%	0.20%

Do analysts prefer TS or TX?

Tenaris presently has a consensus price target of $44.00, indicating a potential upside of 19.96%. Ternium has a consensus price target of $33.25, indicating a potential upside of 9.38%. Given Tenaris' stronger consensus rating and higher probable upside, analysts clearly believe Tenaris is more favorable than Ternium.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	2 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.38
Ternium	1 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.25

Which has better earnings and valuation, TS or TX?

Tenaris has higher earnings, but lower revenue than Ternium. Ternium is trading at a lower price-to-earnings ratio than Tenaris, 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
Tenaris	$12.52B	1.70	$2.04B	$3.28	11.18
Ternium	$17.65B	0.35	-$53.67M	-$1.78	-17.08

Which has more risk and volatility, TS or TX?

Tenaris has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Does the media favor TS or TX?

In the previous week, Ternium had 1 more articles in the media than Tenaris. MarketBeat recorded 3 mentions for Ternium and 2 mentions for Tenaris. Tenaris' average media sentiment score of 0.25 beat Ternium's score of 0.09 indicating that Tenaris is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Tenaris	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Ternium	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

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