Tenaris (NYSE:TS) and Omega Flex (NASDAQ:OFLX) Financial Comparison

Tenaris (NYSE:TS) and Omega Flex (NASDAQ:OFLX) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Tenaris and Omega Flex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaris	$12.52 billion	1.77	$2.04 billion	$3.28	11.60
Omega Flex	$101.68 million	3.41	$18.01 million	$1.72	19.97

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

Dividends

Tenaris pays an annual dividend of $2.24 per share and has a dividend yield of 5.9%. Omega Flex pays an annual dividend of $1.36 per share and has a dividend yield of 4.0%. Tenaris pays out 68.3% of its earnings in the form of a dividend. Omega Flex pays out 79.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Flex has raised its dividend for 7 consecutive years. Tenaris is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

10.5% of Tenaris shares are held by institutional investors. Comparatively, 36.1% of Omega Flex shares are held by institutional investors. 0.2% of Tenaris shares are held by insiders. Comparatively, 65.2% of Omega Flex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Tenaris and Omega Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tenaris	15.05%	10.54%	8.67%
Omega Flex	17.40%	21.09%	16.89%

Analyst Ratings

This is a breakdown of recent recommendations for Tenaris and Omega Flex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	2	1	5	0	2.38
Omega Flex	0	0	0	0	0.00

Tenaris currently has a consensus target price of $44.00, suggesting a potential upside of 15.61%. Given Tenaris’ stronger consensus rating and higher possible upside, equities analysts plainly believe Tenaris is more favorable than Omega Flex.

Risk & Volatility

Tenaris has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Omega Flex has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Summary

Tenaris beats Omega Flex on 9 of the 17 factors compared between the two stocks.

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.

About Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.