Verenium Corp (NASDAQ: VRNM) and CSW Industrials (NASDAQ:CSWI) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Verenium Corp has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, CSW Industrials has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
This table compares Verenium Corp and CSW Industrials’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CSW Industrials||$327.08 million||2.29||$11.07 million||$1.20||39.13|
CSW Industrials has higher revenue and earnings than Verenium Corp. Verenium Corp is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
67.9% of CSW Industrials shares are owned by institutional investors. 2.1% of CSW Industrials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Verenium Corp and CSW Industrials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Verenium Corp and CSW Industrials, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CSW Industrials has a consensus target price of $60.00, suggesting a potential upside of 27.80%. Given CSW Industrials’ higher possible upside, analysts clearly believe CSW Industrials is more favorable than Verenium Corp.
CSW Industrials beats Verenium Corp on 10 of the 10 factors compared between the two stocks.
Verenium Corp Company Profile
Verenium Corporation (Verenium) is an industrial biotechnology company. The Company develops and commercializes enzymes for use in a range of industrial processes. It manufactures and markets its enzyme products in the fields of animal health and nutrition, grain processing, oilfield services and other industrial processes, such as pulp and paper and textiles. As of December 31, 2012, it marketed commercial enzyme products, either independently or in collaboration with its partners. In addition, it has developed a pipeline of enzyme product candidates. Its products are organized into four product lines: animal health and nutrition, grain processing, oilfield services and other industrial processes. As of December 31, 2012, it markets nine commercial enzyme products. In October 2013, BASF SE acquired 71% stake in the Company.
CSW Industrials Company Profile
CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.
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