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 $73.3B against $28.5B — 2.6× the size. Tenaris S.A. trades at the lower P/E: 15.1× against 24.0×. SLB Limited grew revenue faster over the last twelve months: 4.65% against 2.31%. Tenaris S.A. has the higher net margin (15.9% vs 8.40%) and the higher return on invested capital (9.46% vs 8.10%). Both pay a dividend; SLB Limited yields more (2.34% vs 1.02%). Across the 22 metrics below, Tenaris S.A. leads on 18 and SLB Limited on 4.

Valuation

Metric SLB TS Oil & Gas Equipment & Services median
P/E 24.01 15.14 20.53
P/S 2.01 2.37 1.08
P/B 2.72 1.66 1.64
Price to free cash flow 17.34 16.83 12.36
EV/EBITDA 11.11 9.14 8.00
EV/Sales 2.26 2.17 1.29
Earnings yield 4.16% 6.61% 3.88%
Free cash flow yield 5.77% 5.94% 5.18%

Profitability

Metric SLB TS Oil & Gas Equipment & Services median
Gross margin 16.33% 33.90% 22.88%
Operating margin 12.23% 18.51% 7.44%
Net margin 8.40% 15.88% 4.12%
Free cash flow margin 11.57% 14.11% 3.10%
Return on equity 11.44% 11.24% 5.46%
Return on assets 5.57% 9.39% 2.63%
Return on invested capital 8.10% 9.46% 4.26%

Growth

Metric SLB TS Oil & Gas Equipment & Services median
Revenue growth (TTM) 4.65% 2.31% 4.65%
EPS growth (last fiscal year) (24.44%) 1.39% (13.00%)
Revenue growth, 5-year CAGR 8.63% 18.41% 12.57%
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 0.44
Current ratio 1.39 4.07 2.04
Net debt to EBITDA 0.74 (0.89) 1.12

Dividend

Metric SLB TS Oil & Gas Equipment & Services median
Dividend yield 2.34% 1.02% 1.49%
Payout ratio 0.57 0.16 0.36

Size

Metric SLB TS Oil & Gas Equipment & Services median
Market cap 73.27b 28.54b 1.44b

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