Head-To-Head Analysis: Tenaris (NYSE:TS) & Oceaneering International (NYSE:OII)

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

Dividends

Tenaris pays an annual dividend of $2.36 per share and has a dividend yield of 4.2%. Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Tenaris pays out 63.1% of its earnings in the form of a dividend. Oceaneering International pays out 17.2% 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.

Risk and Volatility

Tenaris has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenaris	15.88%	11.14%	9.40%
Oceaneering International	12.19%	18.40%	7.46%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenaris	$12.04 billion	2.49	$1.93 billion	$3.74	14.97
Oceaneering International	$2.87 billion	1.53	$353.76 million	$3.48	12.72

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Tenaris and Oceaneering International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenaris	0	6	4	0	2.40
Oceaneering International	0	4	1	0	2.20

Tenaris presently has a consensus price target of $62.45, indicating a potential upside of 11.57%. Oceaneering International has a consensus price target of $45.00, indicating a potential upside of 1.64%. Given Tenaris’ stronger consensus rating and higher possible upside, equities analysts plainly believe Tenaris is more favorable than Oceaneering International.

Insider & Institutional Ownership

10.4% of Tenaris shares are held by institutional investors. Comparatively, 93.9% of Oceaneering International shares are held by institutional investors. 0.2% of Tenaris shares are held by company insiders. Comparatively, 1.3% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Tenaris beats Oceaneering International on 11 of the 16 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 Oceaneering International

Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.