Carpenter Technology (NYSE:CRS) and Tenaris (NYSE:TS) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Carpenter Technology has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.
Valuation and Earnings
This table compares Carpenter Technology and Tenaris’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Carpenter Technology||$2.16 billion||1.29||$188.50 million||$2.50||23.61|
|Tenaris||$5.29 billion||3.80||$544.73 million||$0.77||44.23|
Tenaris has higher revenue and earnings than Carpenter Technology. Carpenter Technology is trading at a lower price-to-earnings ratio than Tenaris, indicating that it is currently the more affordable of the two stocks.
Carpenter Technology pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Tenaris pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Carpenter Technology pays out 32.0% of its earnings in the form of a dividend. Tenaris pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
94.8% of Carpenter Technology shares are owned by institutional investors. Comparatively, 14.0% of Tenaris shares are owned by institutional investors. 3.1% of Carpenter Technology shares are owned by company insiders. Comparatively, 0.2% of Tenaris shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Carpenter Technology and Tenaris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Carpenter Technology and Tenaris, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Carpenter Technology currently has a consensus price target of $55.00, indicating a potential downside of 6.83%. Tenaris has a consensus price target of $42.13, indicating a potential upside of 23.68%. Given Tenaris’ stronger consensus rating and higher probable upside, analysts clearly believe Tenaris is more favorable than Carpenter Technology.
Tenaris beats Carpenter Technology on 10 of the 16 factors compared between the two stocks.
About Carpenter Technology
Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The company operates through two segments, Specialty Alloys Operations and Performance Engineered Products. It offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as drilling tools; and metal powders and parts. The company serves the aerospace, defense, transportation, energy, medical, industrial, and consumer markets. Carpenter Technology Corporation was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.
Tenaris S.A. 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 products for oil and gas drilling operations, such as casing and tubing products, premium connections, drill pipes, coiled tubing, hot-rolled and cold-drawn seamless tubes, tubular and non-tubular accessories, and devices. It also provides offshore line pipe products, including top tensioned and steel catenary risers, export lines and flowlines, bends, corrosion resistant alloys, coiled line pipes, umbilical tubings, and coated pipes; and seamless and welded tubes for onshore line pipe; various seamless steel tubes and pipes for refineries, petrochemical, and gas-processing plants; and tubular products for the power generation industry. In addition, the company offers sucker rods, couplings, and accessories, as well as technical support services; coiled tubing; hot-rolled and cold-drawn seamless steel tubes and components for use in standard mechanical engineering application, and civil and industrial installations, as well as for manufacturing earth-moving machines, architectural structures, non-oil drilling systems, and gas cylinders; and seamless tubes and tube-based components for car manufacturers and their suppliers. Additionally, it offers financial services. The company operates in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. Tenaris S.A. was founded in 2001 and is headquartered in Luxembourg City, Luxembourg. Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l.
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