Head to Head Survey: Kraton (KRA) vs. Chemtura (CHMT)

Kraton (NYSE: KRA) and Chemtura (NYSE:CHMT) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for Kraton and Chemtura, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraton 0 1 2 0 2.67
Chemtura 0 0 0 0 N/A

Kraton currently has a consensus target price of $60.00, indicating a potential upside of 24.56%. Given Kraton’s higher probable upside, analysts clearly believe Kraton is more favorable than Chemtura.

Profitability

This table compares Kraton and Chemtura’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kraton 1.27% 14.19% 2.56%
Chemtura 5.71% 9.00% 4.02%

Earnings and Valuation

This table compares Kraton and Chemtura’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kraton $1.74 billion 0.86 $107.30 million $0.76 63.38
Chemtura N/A N/A N/A ($0.19) -176.32

Kraton has higher revenue and earnings than Chemtura. Chemtura is trading at a lower price-to-earnings ratio than Kraton, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

97.5% of Kraton shares are held by institutional investors. Comparatively, 93.1% of Chemtura shares are held by institutional investors. 4.7% of Kraton shares are held by company insiders. Comparatively, 2.6% of Chemtura shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Kraton beats Chemtura on 8 of the 10 factors compared between the two stocks.

About Kraton

Kraton Corporation, formerly Kraton Performance Polymers, Inc., is a specialty chemicals company. The Company manufactures styrenic block copolymers (SBCs) and other engineered polymers. The Company also produces specialty products primarily derived from pine wood pulping co-products. The Company operates through two segments: Polymer Segment, which comprises SBCs and other engineered polymers business, and Chemical Segment, which comprises pine-based specialty products business. Its SBCs are used in a range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing and footwear products. The Company also sells isoprene rubber (IR) and isoprene rubber latex (IRL), which are non-SBC products primarily used in applications, such as medical products, personal care, adhesives, tackifiers, paints and coatings. It offers crude tall oil (CTO) and crude sulfate turpentine (CST).

About Chemtura

Chemtura Corporation is a chemical company. The Company is engaged in developing, manufacturing and marketing of engineered industrial specialty chemicals. The Company’s products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company’s segments are Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment manufactures and markets lubricant additive components, synthetic lubricant base-stocks, synthetic finished fluids, calcium sulfonate specialty greases and phosphate and polyester based fluids, and is also engaged in the development and production of hot cast elastomer pre-polymers. The Industrial Engineered Products segment develops and manufactures bromine and bromine-based products and organometallic compounds. The Company operates in a range of industries, including automotive, building and construction, electronics, lubricants, packaging and transportation.

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