Head-To-Head Analysis: Tenaris (TS) & Its Peers

Tenaris (NYSE: TS) is one of 22 publicly-traded companies in the “Blast furnaces & steel mills” industry, but how does it compare to its competitors? We will compare Tenaris to related businesses based on the strength of its institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Analyst Recommendations

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This is a summary of current ratings and price targets for Tenaris and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenaris 0 6 9 0 2.60
Tenaris Competitors 306 903 1077 54 2.38

Tenaris presently has a consensus price target of $39.00, indicating a potential upside of 6.06%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 13.99%. Given Tenaris’ competitors higher probable upside, analysts clearly believe Tenaris has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

12.9% of Tenaris shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Blast furnaces & steel mills” companies are owned by institutional investors. 0.2% of Tenaris shares are owned by company insiders. Comparatively, 9.4% of shares of all “Blast furnaces & steel mills” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Tenaris and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenaris 10.30% 3.92% 3.17%
Tenaris Competitors 4.25% 10.75% 3.42%

Valuation and Earnings

This table compares Tenaris and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tenaris $5.29 billion $544.73 million 47.75
Tenaris Competitors $12.33 billion $652.37 million 15.43

Tenaris’ competitors have higher revenue and earnings than Tenaris. Tenaris is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Tenaris pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. Tenaris pays out 67.5% of its earnings in the form of a dividend. As a group, “Blast furnaces & steel mills” companies pay a dividend yield of 2.6% and pay out 40.0% of their earnings in the form of a dividend. Tenaris lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Tenaris has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Tenaris’ competitors have a beta of 1.38, meaning that their average share price is 38% more volatile than the S&P 500.

Summary

Tenaris competitors beat Tenaris on 11 of the 15 factors compared.

Tenaris Company Profile

Tenaris S.A. produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. The company offers products for oil and gas drilling operations, such as casing and tubing products, premium connections, drill pipes, coiled tubing, hot-rolled and cold-drawn seamless tubes, tubular and non-tubular accessories, and devices. It also provides offshore line pipe products, including top tensioned and steel catenary risers, export lines and flowlines, bends, corrosion resistant alloys, coiled line pipes, umbilical tubings, and coated pipes; and seamless and welded tubes for onshore line pipe; various seamless steel tubes and pipes for refineries, petrochemical, and gas-processing plants; and tubular products for the power generation industry. In addition, the company offers sucker rods, couplings, and accessories, as well as technical support services; coiled tubing; hot-rolled and cold-drawn seamless steel tubes and components for use in standard mechanical engineering application, and civil and industrial installations, as well as for manufacturing earth-moving machines, architectural structures, non-oil drilling systems, and gas cylinders; and seamless tubes and tube-based components for car manufacturers and their suppliers. Additionally, it offers financial services. The company operates in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. Tenaris S.A. was founded in 2001 and is headquartered in Luxembourg City, Luxembourg. Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l.

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