Enerflex (NYSE:EFXT) vs. Tenaris (NYSE:TS) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enerflex	2.94%	13.15%	5.45%
Tenaris	16.24%	11.53%	9.66%

Volatility & Risk

Enerflex has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

46.5% of Enerflex shares are held by institutional investors. Comparatively, 10.4% of Tenaris shares are held by institutional investors. 0.2% of Tenaris shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Enerflex 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
Enerflex	$2.57 billion	0.96	$64.00 million	$0.58	34.84
Tenaris	$11.98 billion	2.58	$1.93 billion	$3.90	15.70

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

Analyst Ratings

This is a summary of recent ratings and price targets for Enerflex and Tenaris, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	0	3	5	1	2.78
Tenaris	0	6	5	1	2.58

Enerflex currently has a consensus target price of $38.00, suggesting a potential upside of 88.03%. Tenaris has a consensus target price of $63.84, suggesting a potential upside of 4.29%. Given Enerflex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Enerflex is more favorable than Tenaris.

Dividends

Enerflex pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Tenaris pays an annual dividend of $2.40 per share and has a dividend yield of 3.9%. Enerflex pays out 20.7% of its earnings in the form of a dividend. Tenaris pays out 61.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enerflex has raised its dividend for 1 consecutive years.

About Enerflex

Enerflex Ltd. provides equipment, services and integrated solutions for natural gas infrastructure and energy projects. Its offerings include gas compression, processing and refrigeration systems, as well as power generation equipment. The company supports projects from engineering and equipment manufacturing through construction, installation and commissioning. It also provides aftermarket services, including operations, maintenance and parts support. Headquartered in Calgary, Alberta, Enerflex serves customers across North America, Latin America and international markets.

About Tenaris

Tenaris S.A. is a global manufacturer and supplier of steel pipe products and related services, with a primary focus on the energy industry. Its products include casing and tubing used in oil and gas wells, line pipe for transporting fluids, and other tubular products for industrial applications. The company also provides services such as pipe processing, engineering support, logistics, and assistance at drilling sites. Tenaris serves customers across a broad range of international markets, including the Americas, Europe, the Middle East, Africa, and Asia.