Gerdau (GGB) Competitors

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

Does the media refer more to TS or GGB?

In the previous week, Tenaris had 5 more articles in the media than Gerdau. MarketBeat recorded 6 mentions for Tenaris and 1 mentions for Gerdau. Gerdau's average media sentiment score of 1.83 beat Tenaris' score of 0.10 indicating that Gerdau is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Tenaris	0 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Gerdau	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do insiders & institutionals hold more shares of 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Which has higher earnings and valuation, TS or GGB?

Tenaris has higher revenue and 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
Tenaris	$12.52B	1.78	$2.04B	$3.28	11.70
Gerdau	$12.43B	0.52	$846.59M	$0.29	10.69

Which has more risk & volatility, TS or GGB?

Tenaris has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Gerdau has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Do analysts prefer TS or GGB?

Tenaris currently has a consensus target price of $44.00, indicating a potential upside of 14.61%. Gerdau has a consensus target price of $3.80, indicating a potential upside of 22.58%. Given Gerdau's stronger consensus rating and higher probable upside, analysts plainly believe Gerdau is more favorable than Tenaris.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	2 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.38
Gerdau	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Is TS or GGB more profitable?

Tenaris has a net margin of 15.05% compared to Gerdau's net margin of 4.87%. Tenaris' return on equity of 10.54% beat Gerdau's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Tenaris	15.05%	10.54%	8.67%
Gerdau	4.87%	6.63%	4.44%

Is TS or GGB a better dividend stock?

Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 5.8%. Gerdau pays an annual dividend of $0.08 per share and has a dividend yield of 2.6%. Tenaris pays out 68.3% of its earnings in the form of a dividend. Gerdau pays out 27.6% 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.

Summary

Tenaris beats Gerdau on 13 of the 18 factors compared between the two stocks.