Head to Head Survey: Trinseo (TSE) & OMNOVA Solutions (OMN)

Trinseo (NYSE: TSE) and OMNOVA Solutions (NYSE:OMN) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 1.9%. OMNOVA Solutions does not pay a dividend. Trinseo pays out 22.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

96.9% of Trinseo shares are owned by institutional investors. Comparatively, 88.9% of OMNOVA Solutions shares are owned by institutional investors. 0.3% of Trinseo shares are owned by company insiders. Comparatively, 4.8% of OMNOVA Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Trinseo and OMNOVA Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trinseo $3.72 billion 0.91 $318.31 million $6.39 12.12
OMNOVA Solutions $759.90 million 0.63 -$400,000.00 ($0.13) -81.92

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

Risk and Volatility

Trinseo has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Profitability

This table compares Trinseo and OMNOVA Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trinseo 6.78% 65.80% 13.58%
OMNOVA Solutions -0.78% 22.71% 3.84%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Trinseo and OMNOVA Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 4 0 2.67
OMNOVA Solutions 0 1 2 0 2.67

Trinseo presently has a consensus target price of $81.40, indicating a potential upside of 5.10%. OMNOVA Solutions has a consensus target price of $12.00, indicating a potential upside of 12.68%. Given OMNOVA Solutions’ higher probable upside, analysts plainly believe OMNOVA Solutions is more favorable than Trinseo.

Summary

Trinseo beats OMNOVA Solutions on 12 of the 15 factors compared between the two stocks.

About Trinseo

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

About OMNOVA Solutions

OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.

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