Head to Head Contrast: Enerflex (NYSE:EFXT) & Tenaris (NYSE:TS)

Tenaris (NYSE:TS) and Enerflex (NYSE:EFXT) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Valuation & Earnings

This table compares Tenaris and Enerflex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaris	$11.98 billion	2.58	$1.93 billion	$3.90	15.70
Enerflex	$2.57 billion	0.96	$64.00 million	$0.58	34.84

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

Profitability

This table compares Tenaris and Enerflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenaris	16.24%	11.53%	9.66%
Enerflex	2.94%	13.15%	5.45%

Volatility and Risk

Tenaris has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Enerflex has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Dividends

Tenaris pays an annual dividend of $2.40 per share and has a dividend yield of 3.9%. Enerflex pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Tenaris pays out 61.5% of its earnings in the form of a dividend. Enerflex pays out 20.7% 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. Enerflex has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tenaris and Enerflex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	0	6	5	1	2.58
Enerflex	0	3	5	1	2.78

Tenaris presently has a consensus target price of $63.84, suggesting a potential upside of 4.29%. Enerflex has a consensus target price of $38.00, suggesting a potential upside of 88.03%. Given Enerflex’s stronger consensus rating and higher probable upside, analysts plainly believe Enerflex is more favorable than Tenaris.

Insider & Institutional Ownership

10.4% of Tenaris shares are owned by institutional investors. Comparatively, 46.5% of Enerflex shares are owned by institutional investors. 0.2% of Tenaris shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About Tenaris

Tenaris S.A. is a global manufacturer and supplier of steel pipe products and related services, with a primary focus on the energy industry. Its products include casing and tubing used in oil and gas wells, line pipe for transporting fluids, and other tubular products for industrial applications. The company also provides services such as pipe processing, engineering support, logistics, and assistance at drilling sites. Tenaris serves customers across a broad range of international markets, including the Americas, Europe, the Middle East, Africa, and Asia.

About Enerflex

Enerflex Ltd. provides equipment, services and integrated solutions for natural gas infrastructure and energy projects. Its offerings include gas compression, processing and refrigeration systems, as well as power generation equipment. The company supports projects from engineering and equipment manufacturing through construction, installation and commissioning. It also provides aftermarket services, including operations, maintenance and parts support. Headquartered in Calgary, Alberta, Enerflex serves customers across North America, Latin America and international markets.