Comparing Ternium (NYSE:TX) & Vox Royalty (NASDAQ:VOXR)

Vox Royalty (NASDAQ:VOXR) and Ternium (NYSE:TX) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Vox Royalty and Ternium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vox Royalty	$16.62 million	23.40	$5.89 million	$0.67	8.36
Ternium	$15.61 billion	0.73	$425.23 million	$3.56	15.97

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

Risk & Volatility

Vox Royalty has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Ternium has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Vox Royalty and Ternium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vox Royalty	144.32%	13.41%	12.00%
Ternium	4.37%	4.26%	2.92%

Dividends

Vox Royalty pays an annual dividend of $0.06 per share and has a dividend yield of 1.1%. Ternium pays an annual dividend of $2.60 per share and has a dividend yield of 4.6%. Vox Royalty pays out 9.0% of its earnings in the form of a dividend. Ternium pays out 73.0% 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.

Insider and Institutional Ownership

46.0% of Vox Royalty shares are owned by institutional investors. Comparatively, 12.0% of Ternium shares are owned by institutional investors. 0.0% of Ternium shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Vox Royalty and Ternium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vox Royalty	0	1	3	0	2.75
Ternium	0	4	6	1	2.73

Vox Royalty currently has a consensus target price of $8.00, suggesting a potential upside of 42.86%. Ternium has a consensus target price of $54.50, suggesting a potential downside of 4.13%. Given Vox Royalty’s stronger consensus rating and higher possible upside, research analysts plainly believe Vox Royalty is more favorable than Ternium.

Summary

Ternium beats Vox Royalty on 9 of the 17 factors compared between the two stocks.

About Vox Royalty

Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.

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.