ArcelorMittal (MT) vs Ternium S.A. (TX)

ArcelorMittal and Ternium S.A. are both Steel companies. ArcelorMittal is the larger, with a market value of $54.3B against $10.9B — 5.0× the size. Ternium S.A. trades at the lower P/E: 15.6× against 29.6×. ArcelorMittal grew revenue faster over the last twelve months: 3.65% against −1.43%. Ternium S.A. has the higher net margin (4.37% vs 2.88%) and the higher return on invested capital (4.39% vs 2.52%). Both pay a dividend; Ternium S.A. yields more (7.42% vs 1.82%). Across the 22 metrics below, Ternium S.A. leads on 18 and ArcelorMittal on 4.

Valuation

Metric MT TX Steel median
P/E 29.56 15.58 21.10
P/S 0.85 0.68 0.70
P/B 0.94 0.65 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 10.90 5.64 10.71
EV/Sales 1.01 0.70 0.85
Earnings yield 3.38% 6.42% 4.56%
Free cash flow yield (0.11%) (4.32%) 0.00%

Profitability

Metric MT TX Steel median
Gross margin 7.27% 17.75% 13.91%
Operating margin 4.26% 7.45% 4.77%
Net margin 2.88% 4.37% 3.40%
Free cash flow margin (0.09%) (2.94%) 0.00%
Return on equity 3.23% 4.20% 2.21%
Return on assets 1.83% 2.89% 1.83%
Return on invested capital 2.52% 4.39% 2.52%

Growth

Metric MT TX Steel median
Revenue growth (TTM) 3.65% (1.43%) 11.33%
EPS growth (last fiscal year) 143.20% 903.70% —
Revenue growth, 5-year CAGR 2.87% 12.31% 6.73%
Net income growth, 5-year CAGR 0.00% (11.39%) 0.00%

Health

Metric MT TX Steel median
Debt to equity 0.25 0.18 0.22
Current ratio 1.43 2.58 2.58
Net debt to EBITDA 1.21 (0.41) 0.10

Dividend

Metric MT TX Steel median
Dividend yield 1.82% 7.42% 2.48%
Payout ratio 0.04 0.44 0.04

Size

Metric MT TX Steel median
Market cap 54.31b 10.90b 1.46b

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