Reviewing Innovex International (NYSE:INVX) & Tenaris (NYSE:TS)

Innovex International (NYSE:INVX) and Tenaris (NYSE:TS) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Innovex International has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Innovex International and Tenaris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	6.17%	7.12%	5.80%
Tenaris	15.88%	11.15%	9.40%

Insider & Institutional Ownership

10.4% of Tenaris shares are owned by institutional investors. 34.9% of Innovex International shares are owned by company insiders. Comparatively, 0.2% of Tenaris shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Innovex International and Tenaris, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	0	3	1	2	2.83
Tenaris	0	5	4	1	2.60

Innovex International presently has a consensus price target of $32.25, indicating a potential upside of 15.36%. Tenaris has a consensus price target of $63.62, indicating a potential upside of 20.13%. Given Tenaris’ higher probable upside, analysts clearly believe Tenaris is more favorable than Innovex International.

Earnings & Valuation

This table compares Innovex International and Tenaris”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$978.25 million	2.00	$83.30 million	$0.89	31.41
Tenaris	$11.98 billion	2.37	$1.93 billion	$3.74	14.16

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

Summary

Tenaris beats Innovex International on 11 of the 15 factors compared between the two stocks.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

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.