Terravia Holdings (NASDAQ: TVIA) and Valvoline (NYSE:VVV) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Valvoline pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Terravia Holdings does not pay a dividend. Valvoline pays out 15.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Terravia Holdings and Valvoline’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Valvoline||$2.03 billion||2.31||$520.00 million||$1.29||17.92|
Valvoline has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
43.4% of Terravia Holdings shares are owned by institutional investors. Comparatively, 92.3% of Valvoline shares are owned by institutional investors. 10.1% of Terravia Holdings shares are owned by insiders. Comparatively, 0.1% of Valvoline shares are owned by 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.
This is a breakdown of recent recommendations and price targets for Terravia Holdings and Valvoline, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Terravia Holdings currently has a consensus target price of $1.50, indicating a potential upside of 3,659.40%. Valvoline has a consensus target price of $25.73, indicating a potential upside of 11.28%. Given Terravia Holdings’ higher probable upside, equities research analysts plainly believe Terravia Holdings is more favorable than Valvoline.
This table compares Terravia Holdings and Valvoline’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valvoline beats Terravia Holdings on 8 of the 12 factors compared between the two stocks.
About Terravia Holdings
Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.
Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.
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