Metallus (NYSE:MTUS – Get Free Report) and Ternium (NYSE:TX – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
77.6% of Metallus shares are owned by institutional investors. Comparatively, 12.0% of Ternium shares are owned by institutional investors. 3.7% of Metallus shares are owned by company insiders. Comparatively, 0.0% of Ternium 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Metallus and Ternium, as reported by MarketBeat.
|
Sell Ratings |
Hold Ratings |
Buy Ratings |
Strong Buy Ratings |
Rating Score |
| Metallus |
0 |
0 |
0 |
0 |
N/A |
| Ternium |
0 |
0 |
3 |
0 |
3.00 |
Ternium has a consensus target price of $52.33, indicating a potential upside of 42.48%. Given Ternium’s higher probable upside, analysts clearly believe Ternium is more favorable than Metallus.
Valuation & Earnings
This table compares Metallus and Ternium’s gross revenue, earnings per share (EPS) and valuation.
|
Gross Revenue |
Price/Sales Ratio |
Net Income |
Earnings Per Share |
Price/Earnings Ratio |
| Metallus |
$1.36 billion |
0.67 |
$69.40 million |
$1.68 |
12.47 |
| Ternium |
$17.61 billion |
0.42 |
$676.04 million |
$3.37 |
10.90 |
Ternium has higher revenue and earnings than Metallus. Ternium is trading at a lower price-to-earnings ratio than Metallus, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Metallus has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Ternium has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
Profitability
This table compares Metallus and Ternium’s net margins, return on equity and return on assets.
|
Net Margins |
Return on Equity |
Return on Assets |
| Metallus |
5.81% |
13.06% |
8.19% |
| Ternium |
3.53% |
10.21% |
7.35% |
Summary
Metallus beats Ternium on 7 of the 13 factors compared between the two stocks.
About Metallus
Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.
About Ternium
Ternium S.A., together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products. Its Mining segment sells iron ore and pellets. The Usiminas segment offers iron ore extraction, steel transformation, and production of capital goods and logistics; and manufactures and sells various products and raw materials, such as flat steel, iron ore, and stamped steel parts for the automotive industry and products for the civil construction and capital goods industry. It also provides medical and social; scrap; renewable energy; and engineering and other services, as well as operates as a distribution company. In addition, the company engages in the exploration, exploitation, and pelletizing of iron ore. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.
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