Contrasting Vallourec (VLOWY) and Its Peers

Vallourec (OTCMKTS:VLOWY) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Vallourec to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Dividends

Vallourec pays an annual dividend of $0.35 per share and has a dividend yield of 8.1%. Vallourec pays out 106.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Metals & Mining” companies pay a dividend yield of 9.1% and pay out 10.6% of their earnings in the form of a dividend. Vallourec lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vallourec and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vallourec	0	0	1	0	3.00
Vallourec Competitors	6279	22349	31917	1744	2.47

As a group, “Metals & Mining” companies have a potential upside of 28.44%. Given Vallourec’s peers higher probable upside, analysts clearly believe Vallourec has less favorable growth aspects than its peers.

Profitability

This table compares Vallourec and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vallourec	9.49%	15.20%	7.50%
Vallourec Competitors	-1,158,604,987,491,368,400.00%	48.27%	-2.34%

Valuation and Earnings

This table compares Vallourec and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vallourec	$4.31 billion	$401.23 million	13.15
Vallourec Competitors	$169.59 billion	$266.77 million	-21.60

Vallourec’s peers have higher revenue, but lower earnings than Vallourec. Vallourec is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Vallourec has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Vallourec’s peers have a beta of 0.99, indicating that their average stock price is 1% less volatile than the S&P 500.

Summary

Vallourec peers beat Vallourec on 9 of the 15 factors compared.

About Vallourec

Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and energy markets in Europe, North America, South America, Asia, the Middle East, and internationally. It operates through Tubes; Mine & Forests; and Holding Companies & Other segments. The company offers seamless tubes for refineries, petrochemical facilities, and floating liquefied natural gas plants, as well as production, storage, and offloading units; VAM connections; rigid subsea line pipes and onshore rigid line pipes; and carbon steel and steel alloy tubes, hollow bars, and connections. It also provides assistance in lowering tubes, inspecting connections, and supervising assembly; thread tubes inventory management; tube inspection, maintenance, and repair services; on-site services; preparation for drilling operations; well coordination and supply services based on the drilling programs; and integrated solutions for the subsea line pipe market comprising welding, coating, insulation, bending, logistics, project management, and service agreements. In addition, the company offers tubular products for geothermal; carbon capture, utilization, and storage; and hydrogen industries. Further, it provides tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections for the manufacture of cranes, construction machinery, agricultural machinery, and hydraulic cylinders; and infrastructure construction, as well as axle tubes and gearbox applications for the automotive industry. Additionally, the company is involved in the iron ore and charcoal production businesses. It serves oil service, engineering, and construction companies; distributors and industrial equipment manufacturers; and energy companies, and carbon capture and storage specialists, as well as geothermal, green hydrogen, and solar developers. Vallourec S.A. was founded in 1895 and is based in Meudon, France.