Contrasting Tenaris (NYSE:TS) & Innovex International (NYSE:INVX)

Innovex International (NYSE:INVX) and Tenaris (NYSE:TS) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Insider & Institutional Ownership

10.4% of Tenaris shares are owned by institutional investors. 34.9% of Innovex International shares are owned by insiders. Comparatively, 0.2% of Tenaris shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovex International	6.17%	7.12%	5.80%
Tenaris	15.88%	11.14%	9.40%

Earnings and Valuation

This table compares Innovex International 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
Innovex International	$978.25 million	2.23	$83.30 million	$0.89	35.10
Tenaris	$12.04 billion	2.39	$1.93 billion	$3.74	14.33

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Innovex International and Tenaris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	0	3	1	2	2.83
Tenaris	0	6	4	0	2.40

Innovex International presently has a consensus target price of $32.50, suggesting a potential upside of 4.03%. Tenaris has a consensus target price of $63.28, suggesting a potential upside of 18.11%. Given Tenaris’ higher possible upside, analysts clearly believe Tenaris is more favorable than Innovex International.

Volatility and Risk

Innovex International has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Tenaris has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Summary

Tenaris beats Innovex International on 11 of the 15 factors compared between the two stocks.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

About Tenaris

Tenaris S.A., together with its subsidiaries, produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. The company offers steel casings, tubing products, mechanical and structural pipes, line pipes, cold-drawn pipes, and premium joints and couplings; and coiled tubing products for oil and gas drilling and workovers, and subsea pipelines. It also manufactures sucker rods used in oil extraction activities and tubes for plumbing and construction applications; and offers oilfield/hydraulic fracturing services and energy and raw materials, and financial services. The company operates in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Tenaris S.A. was founded in 2001 and is based in Luxembourg. Tenaris S.A. operates as a subsidiary of Techint Holdings S.à r.l.