Gerdau (GGB) Competitors

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

Do institutionals & insiders hold more shares of GGB or TS?

1.5% of Gerdau shares are held by institutional investors. Comparatively, 10.4% of Tenaris shares are held by institutional investors. 0.0% of Gerdau 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 stock will outperform the market over the long term.

Which has stronger earnings and valuation, GGB or TS?

Tenaris has lower revenue, but higher earnings 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
Gerdau	$64.92B	0.10	$1.50B	$0.46	6.76
Tenaris	$13.09B	1.65	$3.92B	$4.59	8.10

Do analysts prefer GGB or TS?

Gerdau currently has a consensus price target of $5.00, indicating a potential upside of 60.77%. Tenaris has a consensus price target of $42.75, indicating a potential upside of 14.95%. 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
Gerdau	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Tenaris	1 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.40

Does the media favor GGB or TS?

In the previous week, Tenaris had 4 more articles in the media than Gerdau. MarketBeat recorded 7 mentions for Tenaris and 3 mentions for Gerdau. Gerdau's average media sentiment score of 1.15 beat Tenaris' score of 0.41 indicating that Gerdau is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gerdau	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Tenaris	1 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility and risk, GGB or TS?

Gerdau has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Is GGB or TS a better dividend stock?

Gerdau pays an annual dividend of $0.20 per share and has a dividend yield of 6.4%. Tenaris pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Gerdau pays out 43.5% of its earnings in the form of a dividend. Tenaris pays out 23.5% 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.

Is GGB or TS 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
Gerdau	7.47%	7.86%	5.28%
Tenaris	20.23%	15.36%	12.49%

Does the MarketBeat Community favor GGB or TS?

Tenaris received 133 more outperform votes than Gerdau when rated by MarketBeat users. Likewise, 62.11% of users gave Tenaris an outperform vote while only 58.88% of users gave Gerdau an outperform vote.

Company	Underperform	Outperform
Gerdau	Outperform Votes 285 58.88%	Underperform Votes 199 41.12%
Tenaris	Outperform Votes 418 62.11%	Underperform Votes 255 37.89%

Summary

Tenaris beats Gerdau on 14 of the 20 factors compared between the two stocks.