Chemtura (NYSE: CHMT) and Valvoline (NYSE:VVV) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Valuation & Earnings
This table compares Chemtura and Valvoline’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Valvoline||$2.08 billion||2.46||$304.00 million||$1.49||17.05|
This table compares Chemtura and Valvoline’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Chemtura and Valvoline, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valvoline has a consensus target price of $25.71, indicating a potential upside of 1.24%. Given Valvoline’s higher probable upside, analysts clearly believe Valvoline is more favorable than Chemtura.
Insider and Institutional Ownership
93.1% of Chemtura shares are held by institutional investors. Comparatively, 92.4% of Valvoline shares are held by institutional investors. 2.6% of Chemtura shares are held by company insiders. Comparatively, 0.1% of Valvoline shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valvoline pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Chemtura does not pay a dividend. Valvoline pays out 20.1% of its earnings in the form of a dividend.
Valvoline beats Chemtura on 8 of the 12 factors compared between the two stocks.
Chemtura Company Profile
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.
Valvoline Company Profile
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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