Olin (NYSE: OLN) and Chemours (NYSE:CC) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
Olin has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Chemours has a beta of 3.38, meaning that its share price is 238% more volatile than the S&P 500.
This table compares Olin and Chemours’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Olin and Chemours, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Olin presently has a consensus price target of $38.14, indicating a potential upside of 9.10%. Chemours has a consensus price target of $53.57, indicating a potential upside of 8.66%. Given Olin’s higher probable upside, equities analysts plainly believe Olin is more favorable than Chemours.
Valuation and Earnings
This table compares Olin and Chemours’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Olin||$5.55 billion||1.05||-$3.90 million||$0.46||76.00|
|Chemours||$5.40 billion||1.69||$7.00 million||$1.45||34.00|
Chemours has lower revenue, but higher earnings than Olin. Chemours is trading at a lower price-to-earnings ratio than Olin, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.7% of Olin shares are held by institutional investors. Comparatively, 74.4% of Chemours shares are held by institutional investors. 2.9% of Olin shares are held by insiders. Comparatively, 1.1% of Chemours shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Olin pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Chemours pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Olin pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chemours pays out 8.3% of its earnings in the form of a dividend.
Chemours beats Olin on 10 of the 16 factors compared between the two stocks.
Olin Company Profile
Olin Corporation is a manufacturer and distributor of chemical products, and ammunition. The Company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products, such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
Chemours Company Profile
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
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