Orion Engineered Carbons S.A (NYSE: OEC) and KMG Chemicals (NYSE:KMG) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Risk & Volatility
Orion Engineered Carbons S.A has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, KMG Chemicals has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Valuation and Earnings
This table compares Orion Engineered Carbons S.A and KMG Chemicals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orion Engineered Carbons S.A||$1.35 billion||0.91||$265.23 million||$0.85||24.35|
|KMG Chemicals||$312.48 million||1.82||$51.47 million||$1.80||26.51|
Orion Engineered Carbons S.A has higher revenue and earnings than KMG Chemicals. Orion Engineered Carbons S.A is trading at a lower price-to-earnings ratio than KMG Chemicals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
38.7% of Orion Engineered Carbons S.A shares are owned by institutional investors. Comparatively, 72.8% of KMG Chemicals shares are owned by institutional investors. 6.9% of KMG Chemicals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Orion Engineered Carbons S.A pays an annual dividend of $0.75 per share and has a dividend yield of 3.6%. KMG Chemicals pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Orion Engineered Carbons S.A pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KMG Chemicals pays out 6.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Orion Engineered Carbons S.A and KMG Chemicals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orion Engineered Carbons S.A||0||1||2||0||2.67|
Orion Engineered Carbons S.A presently has a consensus price target of $23.33, indicating a potential upside of 12.72%. KMG Chemicals has a consensus price target of $37.00, indicating a potential downside of 22.46%. Given Orion Engineered Carbons S.A’s higher probable upside, equities analysts plainly believe Orion Engineered Carbons S.A is more favorable than KMG Chemicals.
This table compares Orion Engineered Carbons S.A and KMG Chemicals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orion Engineered Carbons S.A||4.12%||148.13%||8.81%|
KMG Chemicals beats Orion Engineered Carbons S.A on 10 of the 16 factors compared between the two stocks.
Orion Engineered Carbons S.A Company Profile
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
KMG Chemicals Company Profile
KMG Chemicals, Inc. manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals. The Company operates through its subsidiaries, KMG Electronic Chemicals, Inc. (KMG EC), KMG-Bernuth, Inc. (KMG Bernuth) and KMG Val-Tex, LLC (Val-Tex). The Company’s Electronic chemicals business sells high purity and ultra-purity wet process chemicals primarily to the semiconductor industry. The Company’s Other chemicals segment includes its industrial lubricants business and wood treating chemicals business. The Company’s products sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals.
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