Critical Analysis: Oil States International (OIS) & Tenaris (TS)
Oil States International (NYSE: OIS) and Tenaris (NYSE:TS) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
This is a breakdown of recent ratings and price targets for Oil States International and Tenaris, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oil States International||0||10||3||0||2.23|
Oil States International presently has a consensus price target of $35.00, indicating a potential upside of 58.73%. Tenaris has a consensus price target of $35.17, indicating a potential upside of 29.62%. Given Oil States International’s higher probable upside, equities analysts plainly believe Oil States International is more favorable than Tenaris.
Risk & Volatility
Oil States International has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
This table compares Oil States International and Tenaris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oil States International||-7.94%||-4.21%||-3.65%|
Earnings & Valuation
This table compares Oil States International and Tenaris’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Oil States International||$671.81 million||1.68||$37.12 million||($1.06)||-20.80|
|Tenaris||$4.43 billion||3.61||$774.70 million||$0.57||47.60|
Tenaris has higher revenue and earnings than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than Tenaris, indicating that it is currently the more affordable of the two stocks.
Tenaris pays an annual dividend of $1.12 per share and has a dividend yield of 4.1%. Oil States International does not pay a dividend. Tenaris pays out 196.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
17.6% of Tenaris shares are owned by institutional investors. 2.0% of Oil States International shares are owned by insiders. Comparatively, 0.2% of Tenaris shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Tenaris beats Oil States International on 11 of the 15 factors compared between the two stocks.
About Oil States International
Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and natural gas related companies throughout the world. The Company operates as a technology-focused energy services company. The Company operates through two segments: Offshore Products and Well Site Services. Through Offshore Products segment, the Company provides engineered products and services for offshore oil and natural gas production systems and facilities, as well as certain products and services to the offshore and land-based drilling and completion markets. The Company’s well site services segment includes a range of products and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Company operates in active oil and natural gas producing regions, including onshore and offshore the United States, Canada, West Africa, the North Sea, South America and Southeast and Central Asia.
Tenaris S.A. is a holding company, which is a steel producer with production facilities in Mexico, Argentina, Colombia, United States and Guatemala. The Company supplies round steel bars and flat steel products for its pipes business. It operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG) used in drilling operations, and for other industrial applications with production processes that include in the transformation of steel into tubular products. It operates in geographical areas, such as North America, South America, Europe, Middle East and Africa, and Asia Pacific. Its products and services include OCTG, Premium Connections, Rig Direct, Offshore Line Pipe, Onshore Line Pipe, Hydrocarbon Processing, Power Generation, Sucker Rods, Coiled Tubing, Industrial and Mechanical, and Automotive.
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