Analyzing SunCoke Energy (SXC) & Ternium (TX)

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SunCoke Energy (NYSE:SXC) and Ternium (NYSE:TX) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for SunCoke Energy and Ternium, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy 0 0 3 0 3.00
Ternium 1 0 4 0 2.60

SunCoke Energy presently has a consensus price target of $13.50, suggesting a potential upside of 44.08%. Ternium has a consensus price target of $39.50, suggesting a potential upside of 33.22%. Given SunCoke Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SunCoke Energy is more favorable than Ternium.

Insider & Institutional Ownership

88.6% of SunCoke Energy shares are held by institutional investors. Comparatively, 18.6% of Ternium shares are held by institutional investors. 3.9% of SunCoke Energy shares are held by insiders. Comparatively, 0.0% of Ternium shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SunCoke Energy and Ternium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy 10.99% 5.00% 1.61%
Ternium 11.58% 21.81% 11.14%

Risk & Volatility

SunCoke Energy has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Ternium has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Dividends

Ternium pays an annual dividend of $1.10 per share and has a dividend yield of 3.7%. SunCoke Energy does not pay a dividend. Ternium pays out 24.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares SunCoke Energy and Ternium’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunCoke Energy $1.33 billion 0.46 $122.40 million $0.28 33.46
Ternium $9.70 billion 0.61 $886.21 million $4.51 6.57

Ternium has higher revenue and earnings than SunCoke Energy. Ternium is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Ternium beats SunCoke Energy on 10 of the 16 factors compared between the two stocks.

SunCoke Energy Company Profile

SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. SunCoke Energy, Inc. was founded in 1960 and is headquartered in Lisle, Illinois.

Ternium Company Profile

Ternium S.A., through its subsidiaries, manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. It operates in two segments, Steel and Mining. The Steel segment offers steel products, including slabs, billets and round bars, hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plates, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, and roll formed products, as well as other products, such as pig iron. It also produces and sells electricity to electric grids. The Mining segment sells iron ore concentrates and pellets. The company serves various companies and small businesses operating in the automotive, home appliance, construction, capital goods, container, food, and energy industries. Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

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