Ternium (NYSE: TX) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it compare to its competitors? We will compare Ternium to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.
Volatility and Risk
Ternium has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Ternium’s competitors have a beta of 1.38, meaning that their average share price is 38% more volatile than the S&P 500.
This table compares Ternium and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
19.0% of Ternium shares are held by institutional investors. Comparatively, 54.6% of shares of all “Blast furnaces & steel mills” companies are held by institutional investors. 0.0% of Ternium shares are held by company insiders. Comparatively, 9.4% of shares of all “Blast furnaces & steel mills” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Ternium pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Ternium pays out 22.2% of its earnings in the form of a dividend. As a group, “Blast furnaces & steel mills” companies pay a dividend yield of 2.6% and pay out 46.6% of their earnings in the form of a dividend. Ternium is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Ternium and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Ternium||$9.70 billion||$886.21 million||8.07|
|Ternium Competitors||$12.33 billion||$652.37 million||16.19|
Ternium’s competitors have higher revenue, but lower earnings than Ternium. Ternium is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current recommendations and price targets for Ternium and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ternium currently has a consensus target price of $34.00, indicating a potential downside of 6.57%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 14.67%. Given Ternium’s competitors higher probable upside, analysts clearly believe Ternium has less favorable growth aspects than its competitors.
Ternium beats its competitors on 8 of the 15 factors compared.
Ternium Company Profile
Ternium S.A. manufactures and processes various steel products in Mexico, Argentina, Bolivia, Chile, Paraguay, Uruguay, Colombia, the United States, Central America, and internationally. The company operates in two segments, Steel and Mining. The Steel segment offers steel products, such as slabs, billets and round bars, hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plates, hot dipped galvanized and electrogalvanized sheets, pre-painted sheets, steel pipes and tubular products, beams, roll formed products, and other products. The Mining segment sells iron ore concentrates and pellets. The company serves various companies and small businesses operating in construction, automotive, home appliances, capital goods, container, food, and energy industries. Ternium S.A. was founded in 1961 and is headquartered in Buenos Aires, Argentina. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.
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