Reliance, Inc. (RS) vs Ternium S.A. (TX)

Reliance, Inc. and Ternium S.A. are both Steel companies. Reliance, Inc. is the larger, with a market value of $21.1B against $9.6B — 2.2× the size. Ternium S.A. trades at the lower P/E: 9.1× against 19.2×. Reliance, Inc. grew revenue faster over the last twelve months: 24.8% against 6.25%. Reliance, Inc. has the higher net margin (6.38% vs 5.74%) and the higher return on invested capital (10.5% vs 5.65%). Both pay a dividend; Ternium S.A. yields more (4.51% vs 1.19%). Across the 22 metrics below, Ternium S.A. leads on 12 and Reliance, Inc. on 10.

Valuation

Metric RS TX Steel median
P/E 19.23 9.14 16.37
P/S 1.22 0.57 0.70
P/B 2.74 0.57 1.10
Price to free cash flow 41.44 n/m 22.15
EV/EBITDA 12.51 4.92 8.16
EV/Sales 1.30 0.58 0.79
Earnings yield 5.20% 10.94% 5.02%
Free cash flow yield 2.41% (0.88%) 0.00%

Profitability

Metric RS TX Steel median
Gross margin 28.10% 19.57% 13.96%
Operating margin 8.80% 9.31% 6.93%
Net margin 6.38% 5.74% 3.14%
Free cash flow margin 2.95% (0.50%) 0.00%
Return on equity 14.71% 0.00% 2.21%
Return on assets 9.99% 3.93% 1.83%
Return on invested capital 10.46% 5.65% 3.18%

Growth

Metric RS TX Steel median
Revenue growth (TTM) 24.75% 6.25% 15.40%
EPS growth (last fiscal year) (10.15%) 903.70% (18.80%)
Revenue growth, 5-year CAGR 10.16% 12.31% 7.46%
Net income growth, 5-year CAGR 14.91% (11.39%) 0.00%

Health

Metric RS TX Steel median
Debt to equity 0.21 0.19 0.25
Current ratio 4.12 2.55 2.56
Net debt to EBITDA 0.93 (0.41) 0.10

Dividend

Metric RS TX Steel median
Dividend yield 1.19% 4.51% 1.20%
Payout ratio 0.23 0.41 0.36

Size

Metric RS TX Steel median
Market cap 21.09b 9.55b 2.07b

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