Methanex Corporation (NASDAQ: MEOH) and Chemours Company (The) (NYSE:CC) are both mid-cap commodity chemicals – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
This table compares Methanex Corporation and Chemours Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chemours Company (The)||4.86%||116.80%||8.10%|
This table compares Methanex Corporation and Chemours Company (The)’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Methanex Corporation||$2.00 billion||2.12||-$12.54 million||$3.07||16.43|
|Chemours Company (The)||$5.40 billion||1.80||$7.00 million||$1.45||36.21|
Chemours Company (The) has higher revenue and earnings than Methanex Corporation. Methanex Corporation is trading at a lower price-to-earnings ratio than Chemours Company (The), indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Methanex Corporation and Chemours Company (The), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chemours Company (The)||0||0||7||0||3.00|
Methanex Corporation currently has a consensus price target of $54.73, suggesting a potential upside of 8.49%. Chemours Company (The) has a consensus price target of $52.71, suggesting a potential upside of 0.41%. Given Methanex Corporation’s higher probable upside, analysts plainly believe Methanex Corporation is more favorable than Chemours Company (The).
Institutional and Insider Ownership
83.4% of Methanex Corporation shares are held by institutional investors. Comparatively, 72.9% of Chemours Company (The) shares are held by institutional investors. 1.0% of Methanex Corporation shares are held by insiders. Comparatively, 1.1% of Chemours Company (The) shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Methanex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Methanex Corporation pays out 39.1% of its earnings in the form of a dividend. Chemours Company (The) pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Chemours Company (The) beats Methanex Corporation on 8 of the 14 factors compared between the two stocks.
About Methanex Corporation
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.
About Chemours Company (The)
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
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