Financial Analysis: Tenaris (TS) and Natural Gas Services Group (NGS)
Natural Gas Services Group (NYSE: NGS) and Tenaris (NYSE:TS) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
82.9% of Natural Gas Services Group shares are held by institutional investors. Comparatively, 17.6% of Tenaris shares are held by institutional investors. 6.9% of Natural Gas Services Group shares are held by company insiders. Comparatively, 0.2% of Tenaris shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Natural Gas Services Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
This table compares Natural Gas Services Group and Tenaris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Natural Gas Services Group||4.85%||1.41%||1.13%|
Valuation and Earnings
This table compares Natural Gas Services Group and Tenaris’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Natural Gas Services Group||$68.00 million||4.47||$25.46 million||$0.26||90.39|
|Tenaris||$4.43 billion||3.61||$777.43 million||$0.57||47.47|
Tenaris has higher revenue and earnings than Natural Gas Services Group. Tenaris is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Natural Gas Services Group and Tenaris, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Natural Gas Services Group||0||0||3||0||3.00|
Natural Gas Services Group presently has a consensus price target of $32.67, suggesting a potential upside of 39.01%. Tenaris has a consensus price target of $35.17, suggesting a potential upside of 29.96%. Given Natural Gas Services Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Natural Gas Services Group is more favorable than Tenaris.
Tenaris pays an annual dividend of $1.12 per share and has a dividend yield of 4.1%. Natural Gas Services Group 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.
Natural Gas Services Group Company Profile
Natural Gas Services Group, Inc. is a provider of small to medium horsepower compression equipment to the natural gas industry. The Company focuses primarily on the non-conventional natural gas and oil production business in the United States, such as coal bed methane, gas shale, tight gas and oil shales. The Company manufactures, fabricates and rents natural gases compressors that enhance the production of natural gas wells and provides maintenance services for its natural gas compressors. In addition, it sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. It also manufactures and sells flare systems for oil and gas plant and production facilities. The Company’s operating units include Gas Compressor Rental, Engineered Equipment Sales, Service and Maintenance, and Corporate.
Tenaris Company Profile
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.
Receive News & Stock Ratings for Natural Gas Services Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Natural Gas Services Group Inc. and related stocks with our FREE daily email newsletter.