Valmont Industries (NYSE:VMI – Get Free Report) and Tenaris (NYSE:TS – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Profitability
This table compares Valmont Industries and Tenaris’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Valmont Industries | 8.55% | 22.27% | 10.09% |
Tenaris | 15.05% | 10.54% | 8.67% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Valmont Industries and Tenaris, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Valmont Industries | 0 | 1 | 2 | 0 | 2.67 |
Tenaris | 2 | 1 | 5 | 0 | 2.38 |
Earnings and Valuation
This table compares Valmont Industries and Tenaris”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Valmont Industries | $4.08 billion | 1.60 | $348.26 million | $17.18 | 18.90 |
Tenaris | $12.52 billion | 1.65 | $2.04 billion | $3.28 | 10.83 |
Tenaris has higher revenue and earnings than Valmont Industries. Tenaris is trading at a lower price-to-earnings ratio than Valmont Industries, indicating that it is currently the more affordable of the two stocks.
Dividends
Valmont Industries pays an annual dividend of $2.72 per share and has a dividend yield of 0.8%. Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 6.3%. Valmont Industries pays out 15.8% of its earnings in the form of a dividend. Tenaris pays out 68.3% 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. Valmont Industries has increased its dividend for 1 consecutive years.
Insider & Institutional Ownership
87.8% of Valmont Industries shares are held by institutional investors. Comparatively, 10.5% of Tenaris shares are held by institutional investors. 1.5% of Valmont Industries shares are held by company insiders. Comparatively, 0.2% of Tenaris shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Valmont Industries has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
Summary
Valmont Industries beats Tenaris on 9 of the 17 factors compared between the two stocks.
About Valmont Industries
Valmont Industries, Inc. operates as manufacturer of products and services for infrastructure and agriculture markets in the United States, Australia, Brazil, and internationally. It operates through two segments, Infrastructure and Agriculture. The company manufactures and distributes steel, pre-stressed concrete, composite structures for electrical transmission, substation, and distribution applications; and designs, engineers, and manufactures metal, steel, wood, aluminum, and composite poles and structures for lighting and transportation applications. It also offers galvanizing, anodizing, painting, and powder coating services for paint products; towers, small cell structures, camouflage concealment solutions, passive intermodulation mitigation equipment, and components for wireless communication markets; and solar single-axis tracker product, an integrated system of steel structures, electric motors, and electronic controllers, as well as provides coatings services to preserve metal products. In addition, the company manufactures center pivot components and linear irrigation equipment for the agricultural markets, such as parts and tubular products for industrial customers; advanced technology solutions for agricultural sector; mechanical irrigation equipment and service parts under the Valley brand name. It serves municipalities and government entities, commercial lighting fixtures manufacturing companies, contractors, telecommunications and utility companies, and farmers, as well as the general manufacturing sector. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.
About Tenaris
Tenaris S.A., together with its subsidiaries, 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 steel casings, tubing products, mechanical and structural pipes, line pipes, cold-drawn pipes, and premium joints and couplings; and coiled tubing products for oil and gas drilling and workovers, and subsea pipelines. It also manufactures sucker rods used in oil extraction activities and tubes for plumbing and construction applications; and offers oilfield/hydraulic fracturing services and energy and raw materials, and financial services. The company operates in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Tenaris S.A. was founded in 2001 and is based in Luxembourg. Tenaris S.A. operates as a subsidiary of Techint Holdings S.à r.l.
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