Financial Survey: Methanex (MEOH) & PQ Group (PQG)

Methanex (NASDAQ: MEOH) and PQ Group (NYSE:PQG) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation & Earnings

This table compares Methanex and PQ Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Methanex $2.00 billion 2.50 -$12.54 million $3.01 19.77
PQ Group $1.06 billion 2.08 -$79.74 million N/A N/A

Methanex has higher revenue and earnings than PQ Group.

Analyst Ratings

This is a breakdown of recent ratings for Methanex and PQ Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Methanex 1 5 7 0 2.46
PQ Group 0 3 7 0 2.70

Methanex presently has a consensus target price of $57.38, indicating a potential downside of 3.56%. PQ Group has a consensus target price of $19.75, indicating a potential upside of 20.72%. Given PQ Group’s stronger consensus rating and higher probable upside, analysts clearly believe PQ Group is more favorable than Methanex.

Dividends

Methanex pays an annual dividend of $1.20 per share and has a dividend yield of 2.0%. PQ Group does not pay a dividend. Methanex pays out 39.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

83.1% of Methanex shares are owned by institutional investors. Comparatively, 58.3% of PQ Group shares are owned by institutional investors. 1.0% of Methanex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Methanex and PQ Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Methanex 9.81% 16.02% 6.31%
PQ Group N/A N/A N/A

Summary

Methanex beats PQ Group on 9 of the 12 factors compared between the two stocks.

Methanex Company Profile

Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

PQ Group Company Profile

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.

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