Gerdau (GGB) Competitors

Tenaris (NYSE:TS) and Gerdau (NYSE:GGB) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, community ranking, media sentiment, risk, profitability, earnings and institutional ownership.

Which has more risk and volatility, TS or GGB?

Tenaris has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Gerdau has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Is TS or GGB a better dividend stock?

Tenaris pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Gerdau pays an annual dividend of $0.20 per share and has a dividend yield of 5.8%. Tenaris pays out 23.5% of its earnings in the form of a dividend. Gerdau pays out 43.5% 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.

Does the media prefer TS or GGB?

In the previous week, Tenaris had 2 more articles in the media than Gerdau. MarketBeat recorded 5 mentions for Tenaris and 3 mentions for Gerdau. Tenaris' average media sentiment score of 0.97 beat Gerdau's score of 0.83 indicating that Tenaris is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Tenaris	2 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Gerdau	1 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in TS or GGB?

10.5% of Tenaris shares are owned by institutional investors. Comparatively, 1.5% of Gerdau shares are owned by institutional investors. 0.2% of Tenaris shares are owned by insiders. Comparatively, 0.0% of Gerdau shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Do analysts rate TS or GGB?

Tenaris currently has a consensus target price of $38.67, suggesting a potential upside of 4.48%. Gerdau has a consensus target price of $5.00, suggesting a potential upside of 44.30%. Given Gerdau's stronger consensus rating and higher possible upside, analysts clearly believe Gerdau is more favorable than Tenaris.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	1 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.20
Gerdau	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the MarketBeat Community believe in TS or GGB?

Tenaris received 130 more outperform votes than Gerdau when rated by MarketBeat users. Likewise, 61.94% of users gave Tenaris an outperform vote while only 58.88% of users gave Gerdau an outperform vote.

Company	Underperform	Outperform
Tenaris	Outperform Votes 415 61.94%	Underperform Votes 255 38.06%
Gerdau	Outperform Votes 285 58.88%	Underperform Votes 199 41.12%

Which has better earnings and valuation, TS or GGB?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaris	$14.87B	1.45	$3.92B	$4.59	8.06
Gerdau	$64.92B	0.11	$1.50B	$0.46	7.53

Is TS or GGB more profitable?

Tenaris has a net margin of 20.23% compared to Gerdau's net margin of 7.47%. Tenaris' return on equity of 15.36% beat Gerdau's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Tenaris	20.23%	15.36%	12.49%
Gerdau	7.47%	7.86%	5.28%

Summary

Tenaris beats Gerdau on 14 of the 19 factors compared between the two stocks.