PQ Group Holdings (NYSE: PQG) and Praxair (NYSE:PX) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Praxair pays an annual dividend of $3.15 per share and has a dividend yield of 2.2%. PQ Group Holdings does not pay a dividend. Praxair pays out 56.0% of its earnings in the form of a dividend. PQ Group Holdings has raised its dividend for 12 consecutive years.
This is a summary of current ratings and target prices for PQ Group Holdings and Praxair, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PQ Group Holdings||0||3||7||0||2.70|
PQ Group Holdings currently has a consensus target price of $19.85, suggesting a potential upside of 21.04%. Praxair has a consensus target price of $144.27, suggesting a potential downside of 1.26%. Given PQ Group Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe PQ Group Holdings is more favorable than Praxair.
Insider and Institutional Ownership
54.2% of PQ Group Holdings shares are held by institutional investors. Comparatively, 85.3% of Praxair shares are held by institutional investors. 0.2% of Praxair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares PQ Group Holdings and Praxair’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PQ Group Holdings||N/A||N/A||N/A|
Earnings and Valuation
This table compares PQ Group Holdings and Praxair’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PQ Group Holdings||N/A||N/A||N/A||N/A||N/A|
|Praxair||$10.92 billion||3.83||$3.54 billion||$5.62||26.00|
Praxair has higher revenue and earnings than PQ Group Holdings.
Praxair beats PQ Group Holdings on 7 of the 12 factors compared between the two stocks.
About PQ Group Holdings
PQ Group Holdings Inc is a global provider of catalysts, specialty materials, chemicals and services that enable environmental improvements. The Company’s products and solutions help companies produce vehicles with fuel efficiency. The Company has developed zeolite-based catalysts to reduce pollutants in diesel engines. The Company’s segments include environmental catalysts and services, and performance materials and chemicals. Environmental catalysts and services segment has three product groups, including silica catalysts, zeolite catalysts, and refining services. Silica catalysts product group sells both the finished catalyst and catalysts supports, for the production of high-density polyethylene (HDPE).zeolite catalysts product group is a supplier of emissions control catalysts as well as a supplier of specialty catalysts, precursors, and formulations. Performance materials and chemicals segment has two product groups, including performance materials and performance chemicals.
Praxair, Inc. is an industrial gas company. The Company’s operations are organized into five segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, it operates its surface technologies business through its subsidiary, Praxair Surface Technologies, Inc., which represents the fifth segment. Its operations consist of two product lines: industrial gases and surface technologies. Its industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases). It also designs, engineers and builds equipment that produces industrial gases primarily for internal use. Its Surface Technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.
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