Ternium (NYSE:TX) and Maanshan Iron & Steel (OTCMKTS:MAANF) Critical Survey

Ternium (NYSE:TX) and Maanshan Iron & Steel (OTCMKTS:MAANF) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation & Earnings

This table compares Ternium and Maanshan Iron & Steel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ternium	$15.61 billion	0.63	$425.23 million	$2.91	16.93
Maanshan Iron & Steel	N/A	N/A	N/A	$0.02	10.21

Ternium has higher revenue and earnings than Maanshan Iron & Steel. Maanshan Iron & Steel is trading at a lower price-to-earnings ratio than Ternium, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Ternium and Maanshan Iron & Steel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ternium	0	4	6	1	2.73
Maanshan Iron & Steel	1	0	0	0	1.00

Ternium presently has a consensus target price of $47.94, indicating a potential downside of 2.66%. Given Ternium’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ternium is more favorable than Maanshan Iron & Steel.

Profitability

This table compares Ternium and Maanshan Iron & Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ternium	3.66%	3.70%	2.55%
Maanshan Iron & Steel	N/A	N/A	N/A

Institutional and Insider Ownership

12.0% of Ternium shares are owned by institutional investors. Comparatively, 3.2% of Maanshan Iron & Steel shares are owned by institutional investors. 0.0% of Ternium shares are owned by company 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.

Summary

Ternium beats Maanshan Iron & Steel on 12 of the 12 factors compared between the two stocks.

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.

About Maanshan Iron & Steel

Maanshan Iron & Steel Company Limited, together with its subsidiaries, manufactures and sells iron and steel products, and related by-products in Mainland China, Hong Kong, and internationally. The company offers steel plates, including hot and cold-rolled thin plates, galvanized plates, coil-coating plates, and medium plates; section steel products, such as H-shaped steel and medium-shaped steel; high-speed wire rod and hot-rolled reinforcing steel products; and train wheels and wheel rims. It also engages in the production and distribution of ferrous metallurgy, screw threaded steels, round and section steels, angle and deformed steels, wires, and rods; sale, import, and export of iron ore, iron ore fines, and scrap steel; metallurgy and extended processing of ferrous metals; production and sale of coke and coke chemical products and energy; production and distribution of metallic products; design, research and development, manufacture, maintenance, and sale of rail wheels, axles, wheel sets, bogies, and other rail equipment; trading of steel products and pig iron; and investment and trading businesses. The company was founded in 1953 and is headquartered in Maanshan, the People's Republic of China.