Methanex Corporation (NASDAQ: MEOH) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Methanex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Trecora Resources does not pay a dividend. Methanex Corporation pays out 39.1% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for Methanex Corporation and Trecora Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Methanex Corporation currently has a consensus price target of $54.73, indicating a potential upside of 5.35%. Trecora Resources has a consensus price target of $15.33, indicating a potential upside of 25.17%. Given Trecora Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Trecora Resources is more favorable than Methanex Corporation.
This table compares Methanex Corporation and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Methanex Corporation has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
Valuation and Earnings
This table compares Methanex Corporation and Trecora Resources’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Methanex Corporation||$2.00 billion||2.18||-$12.54 million||$3.07||16.92|
|Trecora Resources||$212.40 million||1.40||$19.42 million||$0.13||94.23|
Trecora Resources has higher revenue, but lower earnings than Methanex Corporation. Methanex Corporation is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.0% of Methanex Corporation shares are held by institutional investors. Comparatively, 41.4% of Trecora Resources shares are held by institutional investors. 1.0% of Methanex Corporation shares are held by insiders. Comparatively, 6.6% of Trecora Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Methanex Corporation beats Trecora Resources on 10 of the 16 factors compared between the two stocks.
Methanex Corporation Company Profile
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.
Trecora Resources Company Profile
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
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