TX vs. X, CMC, CRS, STLD, FMC, GGB, AU, AXTA, RGLD, and KGC
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), Steel Dynamics (STLD), FMC (FMC), Gerdau (GGB), AngloGold Ashanti (AU), Axalta Coating Systems (AXTA), Royal Gold (RGLD), and Kinross Gold (KGC). These companies are all part of the "basic materials" sector.
United States Steel (NYSE:X) and Ternium (NYSE:TX) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, community ranking, earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and media sentiment.
United States Steel has a net margin of 4.96% compared to United States Steel's net margin of 3.84%. United States Steel's return on equity of 10.84% beat Ternium's return on equity.
United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Ternium pays an annual dividend of $2.20 per share and has a dividend yield of 5.3%. United States Steel pays out 5.7% of its earnings in the form of a dividend. Ternium pays out 64.0% 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.
United States Steel received 456 more outperform votes than Ternium when rated by MarketBeat users. However, 66.13% of users gave Ternium an outperform vote while only 55.94% of users gave United States Steel an outperform vote.
United States Steel presently has a consensus target price of $34.89, suggesting a potential downside of 15.13%. Ternium has a consensus target price of $49.25, suggesting a potential upside of 17.57%. Given United States Steel's stronger consensus rating and higher possible upside, analysts plainly believe Ternium is more favorable than United States Steel.
81.9% of United States Steel shares are owned by institutional investors. Comparatively, 12.0% of Ternium shares are owned by institutional investors. 1.0% of United States Steel shares are owned by insiders. Comparatively, 0.0% of Ternium shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
United States Steel has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
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 11 more articles in the media than Ternium. MarketBeat recorded 13 mentions for United States Steel and 2 mentions for Ternium. Ternium's average media sentiment score of 0.96 beat United States Steel's score of 0.43 indicating that United States Steel is being referred to more favorably in the media.
Summary
United States Steel beats Ternium on 12 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.
Skip ChartThis 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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