Analyzing Haynes International (HAYN) & Ternium (TX)
Haynes International (NASDAQ: HAYN) and Ternium (NYSE:TX) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
This table compares Haynes International and Ternium’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Haynes International has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Haynes International and Ternium, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Haynes International presently has a consensus target price of $37.33, suggesting a potential upside of 25.36%. Ternium has a consensus target price of $30.13, suggesting a potential upside of 1.67%. Given Haynes International’s higher probable upside, equities research analysts plainly believe Haynes International is more favorable than Ternium.
Valuation and Earnings
This table compares Haynes International and Ternium’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Haynes International||$401.97 million||0.92||$13.03 million||($0.28)||-106.36|
|Ternium||$8.01 billion||0.73||$1.78 billion||$4.37||6.78|
Ternium has higher revenue and earnings than Haynes International. Haynes International is trading at a lower price-to-earnings ratio than Ternium, indicating that it is currently the more affordable of the two stocks.
Haynes International pays an annual dividend of $0.88 per share and has a dividend yield of 3.0%. Ternium pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Haynes International pays out -314.3% of its earnings in the form of a dividend. Ternium pays out 22.9% 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.
Insider & Institutional Ownership
96.0% of Haynes International shares are owned by institutional investors. Comparatively, 22.5% of Ternium shares are owned by institutional investors. 4.4% of Haynes International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Ternium beats Haynes International on 9 of the 15 factors compared between the two stocks.
Haynes International Company Profile
Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.
Ternium Company Profile
Ternium S.A. is a producer of steel products. The Company produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The Company operates through two segments: Steel and Mining. The Steel segment includes the sales of steel products and the Mining segment includes the sales of iron ore products, which are primarily inter-company. The Steel segment comprises three operating segments: Mexico, the Southern Region and Other Markets. In the steel segment, steel products include slabs, billets and round bars (steel in its basic, semi-finished state), hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plate, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, roll-formed products, and other products. In the mining segment, iron ore is sold as concentrates (fines) and pellets.
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