EVRAZ (OTCMKTS:EVRZF) and Tenaris (NYSE:TS) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EVRAZ $10.83 billion 0.97 $681.36 million $0.48 15.46
Tenaris $5.29 billion 3.76 $544.73 million $0.77 43.71

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

Institutional & Insider Ownership

14.0% of Tenaris shares are owned by institutional investors. 0.2% of Tenaris shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

EVRAZ has a beta of -3.22, meaning that its stock price is 422% less volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Dividends

Tenaris pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. EVRAZ does not pay a dividend. Tenaris pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
EVRAZ N/A N/A N/A
Tenaris 10.21% 5.74% 4.61%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EVRAZ and Tenaris, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EVRAZ 0 0 0 0 N/A
Tenaris 0 8 10 0 2.56

Tenaris has a consensus price target of $42.13, suggesting a potential upside of 25.15%. Given Tenaris’ higher possible upside, analysts clearly believe Tenaris is more favorable than EVRAZ.

Summary

Tenaris beats EVRAZ on 12 of the 15 factors compared between the two stocks.

EVRAZ Company Profile

EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. The company operates through four segments: Steel; Steel, North America; Coal; and Other Operations. Its products include construction products, industrial products, railway products, vanadium products, and pipes, as well as raw materials, such as iron ore, coal, and limestone products. The company is involved in the extraction of vanadium ore; iron ore mining and enrichment; and coal mining and enrichment, as well as energy-generation, shipping, and railway transportation businesses. It has operations in the Commonwealth of Independent States, America, Asia, Europe, Africa, and internationally. The company was founded in 1992 and is headquartered in Moscow, Russia. EVRAZ plc is a subsidiary of Lanebrook Limited.

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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