Ternium (NYSE:TX) and ZK International Group (NASDAQ:ZKIN) Financial Review

Ternium (NYSE:TX) and ZK International Group (NASDAQ:ZKIN) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Ternium and ZK International Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ternium	1	4	6	1	2.58
ZK International Group	1	0	0	0	1.00

Ternium presently has a consensus target price of $46.35, indicating a potential downside of 7.02%. Given Ternium’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ternium is more favorable than ZK International Group.

Insider & Institutional Ownership

12.0% of Ternium shares are owned by institutional investors. Comparatively, 0.3% of ZK International Group shares are owned by institutional investors. 0.0% of Ternium shares are owned by company insiders. Comparatively, 29.8% of ZK International Group 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.

Profitability

This table compares Ternium and ZK International Group’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%
ZK International Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Ternium and ZK International Group”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	0.64	$425.23 million	$2.91	17.13
ZK International Group	$71.24 million	0.12	-$3.98 million	N/A	N/A

Ternium has higher revenue and earnings than ZK International Group.

Risk and Volatility

Ternium has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, ZK International Group has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Summary

Ternium beats ZK International Group on 11 of the 13 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 ZK International Group

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.