Ternium (NYSE: TX) is one of 22 public companies in the “Blast furnaces & steel mills” industry, but how does it contrast to its rivals? We will compare Ternium to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.
Ternium pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. 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 2.2% and pay out 38.3% of their earnings in the form of a dividend. Ternium is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares Ternium and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Ternium||$9.70 billion||$886.21 million||7.59|
|Ternium Competitors||$12.33 billion||$647.83 million||15.57|
Ternium’s rivals have higher revenue, but lower earnings than Ternium. Ternium is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Ternium and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
19.0% of Ternium shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Blast furnaces & steel mills” companies are owned by institutional investors. 0.0% of Ternium shares are owned by company insiders. Comparatively, 9.4% of shares of all “Blast furnaces & steel mills” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Ternium has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Ternium’s rivals have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Ternium and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ternium currently has a consensus price target of $34.00, suggesting a potential downside of 0.73%. As a group, “Blast furnaces & steel mills” companies have a potential upside of 18.93%. Given Ternium’s rivals higher possible upside, analysts plainly believe Ternium has less favorable growth aspects than its rivals.
Ternium beats its rivals 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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