Halliburton Company (HAL) vs Tenaris S.A. (TS)

Halliburton Company and Tenaris S.A. are both Oil & Gas Equipment & Services companies. Tenaris S.A. is the larger, with a market value of $30.7B against $27.4B — 1.1× the size. Tenaris S.A. trades at the lower P/E: 15.9× against 17.5×. Tenaris S.A. grew revenue faster over the last twelve months: 2.31% against 0.63%. Tenaris S.A. has the higher net margin (15.9% vs 7.16%) and the lower return on invested capital (9.46% vs 9.89%). Both pay a dividend; Halliburton Company yields more (2.03% vs 0.98%). Across the 22 metrics below, Tenaris S.A. leads on 14 and Halliburton Company on 8.

Valuation

Metric HAL TS Oil & Gas Equipment & Services median
P/E 17.54 15.88 22.50
P/S 1.25 2.49 1.17
P/B 2.53 1.74 1.82
Price to free cash flow 14.42 17.65 13.72
EV/EBITDA 8.89 9.63 8.68
EV/Sales 1.48 2.28 1.34
Earnings yield 5.70% 6.30% 3.94%
Free cash flow yield 6.93% 5.66% 5.66%

Profitability

Metric HAL TS Oil & Gas Equipment & Services median
Gross margin 15.08% 33.90% 23.26%
Operating margin 11.44% 18.51% 9.34%
Net margin 7.16% 15.88% 4.69%
Free cash flow margin 8.68% 14.11% 5.35%
Return on equity 14.83% 11.24% 4.92%
Return on assets 6.26% 9.39% 2.37%
Return on invested capital 9.89% 9.46% 4.32%

Growth

Metric HAL TS Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.63% 2.31% 6.08%
EPS growth (last fiscal year) (47.00%) 1.39% (13.00%)
Revenue growth, 5-year CAGR 8.96% 18.41% 14.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HAL TS Oil & Gas Equipment & Services median
Debt to equity 0.65 0.02 0.46
Current ratio 2.02 4.07 2.07
Net debt to EBITDA 1.46 (0.89) 0.75

Dividend

Metric HAL TS Oil & Gas Equipment & Services median
Dividend yield 2.03% 0.98% 1.51%
Payout ratio 0.36 0.16 0.38

Size

Metric HAL TS Oil & Gas Equipment & Services median
Market cap 27.40b 30.69b 1.63b

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