Tenaris (NYSE: TS) and C&J Energy Services (NYSE:CJ) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Valuation and Earnings

This table compares Tenaris and C&J Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tenaris $4.43 billion 3.72 $777.43 million $0.57 48.95
C&J Energy Services $1.18 billion 1.54 -$47.16 million N/A N/A

Tenaris has higher revenue and earnings than C&J Energy Services.

Profitability

This table compares Tenaris and C&J Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenaris 7.35% 2.00% 1.63%
C&J Energy Services N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tenaris and C&J Energy Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenaris 1 3 7 0 2.55
C&J Energy Services 0 1 11 0 2.92

Tenaris currently has a consensus target price of $35.17, suggesting a potential upside of 26.05%. C&J Energy Services has a consensus target price of $40.27, suggesting a potential upside of 40.18%. Given C&J Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe C&J Energy Services is more favorable than Tenaris.

Dividends

Tenaris pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. C&J Energy Services does not pay a dividend. Tenaris pays out 196.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

16.0% of Tenaris shares are owned by institutional investors. 0.2% of Tenaris shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Tenaris beats C&J Energy Services on 9 of the 13 factors compared between the two stocks.

Tenaris Company Profile

Tenaris S.A. is a holding company, which is a steel producer with production facilities in Mexico, Argentina, Colombia, United States and Guatemala. The Company supplies round steel bars and flat steel products for its pipes business. It operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG) used in drilling operations, and for other industrial applications with production processes that include in the transformation of steel into tubular products. It operates in geographical areas, such as North America, South America, Europe, Middle East and Africa, and Asia Pacific. Its products and services include OCTG, Premium Connections, Rig Direct, Offshore Line Pipe, Onshore Line Pipe, Hydrocarbon Processing, Power Generation, Sucker Rods, Coiled Tubing, Industrial and Mechanical, and Automotive.

C&J Energy Services Company Profile

C&J Energy Services, Inc. is a completion and production services company, which provides well construction, well completions and well services to the oil and gas industry. The Company operates through three segments: Completion Services, Well Support Services and Other Services. The Company also manufactures, repairs and refurbishes equipment used in the oilfield services industry. It operates in various North American onshore basins. Its Completion Services segment includes the hydraulic fracturing services, cased-hole wireline services, coiled tubing services and other well stimulation services. Its Well Support Services segment includes services, including rig services, fluid management services and other special well site services. Other services segment includes directional drilling services, equipment manufacturing and repair, specialty chemicals sales, research and technology, and the Middle East operations, as well as cementing services.

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