SLB Limited (SLB) vs Tenaris S.A. (TS)

SLB Limited and Tenaris S.A. are both Oil & Gas Equipment & Services companies. SLB Limited is the larger, with a market value of $71.8B against $30.7B — 2.3× the size. Tenaris S.A. trades at the lower P/E: 15.9× against 23.8×. SLB Limited grew revenue faster over the last twelve months: 2.50% against 2.31%. Tenaris S.A. has the higher net margin (15.9% vs 8.53%) and the higher return on invested capital (9.46% vs 8.18%). Both pay a dividend; SLB Limited yields more (2.37% vs 0.98%). Across the 22 metrics below, Tenaris S.A. leads on 15 and SLB Limited on 7.

Valuation

Metric SLB TS Oil & Gas Equipment & Services median
P/E 23.77 15.88 22.50
P/S 2.03 2.49 1.17
P/B 2.70 1.74 1.82
Price to free cash flow 16.33 17.65 13.72
EV/EBITDA 11.11 9.63 8.68
EV/Sales 2.27 2.28 1.34
Earnings yield 4.21% 6.30% 3.94%
Free cash flow yield 6.12% 5.66% 5.66%

Profitability

Metric SLB TS Oil & Gas Equipment & Services median
Gross margin 16.54% 33.90% 23.26%
Operating margin 12.35% 18.51% 9.34%
Net margin 8.53% 15.88% 4.69%
Free cash flow margin 12.41% 14.11% 5.35%
Return on equity 12.71% 11.24% 4.92%
Return on assets 5.95% 9.39% 2.37%
Return on invested capital 8.18% 9.46% 4.32%

Growth

Metric SLB TS Oil & Gas Equipment & Services median
Revenue growth (TTM) 2.50% 2.31% 6.08%
EPS growth (last fiscal year) (24.44%) 1.39% (13.00%)
Revenue growth, 5-year CAGR 8.63% 18.41% 14.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SLB TS Oil & Gas Equipment & Services median
Debt to equity 0.41 0.02 0.46
Current ratio 1.44 4.07 2.07
Net debt to EBITDA 0.74 (0.89) 0.75

Dividend

Metric SLB TS Oil & Gas Equipment & Services median
Dividend yield 2.37% 0.98% 1.51%
Payout ratio 0.57 0.16 0.38

Size

Metric SLB TS Oil & Gas Equipment & Services median
Market cap 71.79b 30.69b 1.63b

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