Ashland Global Holdings (NYSE: ASH) and Tronox (OTCMKTS:TROX) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
95.4% of Ashland Global Holdings shares are held by institutional investors. 1.3% of Ashland Global Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Ashland Global Holdings and Tronox’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashland Global Holdings||-4.71%||10.62%||3.70%|
Valuation and Earnings
This table compares Ashland Global Holdings and Tronox’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ashland Global Holdings||$5.06 billion||0.75||$719.00 million||($3.54)||-17.23|
Ashland Global Holdings has higher revenue and earnings than Tronox.
This is a summary of recent ratings and target prices for Ashland Global Holdings and Tronox, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashland Global Holdings||0||2||2||0||2.50|
Ashland Global Holdings currently has a consensus price target of $82.75, indicating a potential upside of 35.70%.
Ashland Global Holdings pays an annual dividend of $0.90 per share and has a dividend yield of 1.5%. Tronox does not pay a dividend. Ashland Global Holdings pays out -25.4% of its earnings in the form of a dividend. Tronox has increased its dividend for 7 consecutive years.
Ashland Global Holdings beats Tronox on 8 of the 10 factors compared between the two stocks.
About Ashland Global Holdings
Ashland Inc. is engaged in specialty chemicals, and through Valvoline, is a consumer-branded lubricant supplier. The Company operates in three segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. Its Specialty Ingredients segment is engaged in providing cellulose ethers, vinyl pyrrolidones and biofunctionals, and consists of two divisions: Consumer Specialties and Industrial Specialties. Its Performance Materials segment is engaged in providing unsaturated polyester resins and vinyl ester resins, and consists of two divisions: Composites and Intermediates/Solvents. Its Valvoline segment is engaged in producing and distributing automotive, commercial and industrial lubricants, and automotive chemicals. Its chemistry is used in various markets and applications, including architectural coatings, adhesives, automotive, construction, energy and pharmaceutical.
Tronox Limited is engaged in production and marketing of titanium bearing mineral sands and titanium dioxide pigment (TiO2). The Company’s TiO2 products are critical components of everyday applications, such as coatings, plastics, paper and other applications. The Company’s mineral sands business consists primarily of two product streams: titanium feedstock and zircon. The Company operates in three segments: mineral sands, pigment and corporate and other. The corporate and other include its electrolytic manufacturing business. It has operations in North America, Europe, South Africa and the Asia-Pacific region. The Company operates three TiO2 facilities at the locations in Hamilton, Mississippi, Botlek, The Netherlands, and Kwinana, Western Australia, representing approximately 465,000 tons of annual TiO2 production capacity.
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