Financial Review: Vallourec (VLOUF) and The Competition

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vallourec	N/A	N/A	N/A
Vallourec Competitors	-1,158,604,987,491,368,400.00%	48.40%	-2.30%

Valuation & Earnings

This table compares Vallourec and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vallourec	N/A	N/A	10.70
Vallourec Competitors	$169.60 billion	$266.77 million	-21.83

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

Dividends

Vallourec pays an annual dividend of $0.81 per share and has a dividend yield of 3.8%. Vallourec pays out 40.5% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.3% and pay out 10.6% of their earnings in the form of a dividend. Vallourec lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

29.0% of Vallourec shares are held by institutional investors. Comparatively, 16.2% of shares of all “Metals & Mining” companies are held by institutional investors. 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Vallourec rivals beat Vallourec on 5 of the 9 factors compared.

Vallourec Company Profile

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.