The Chemours (NYSE: CC) and Ashland (NYSE:ASH) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Volatility and Risk
The Chemours has a beta of 2.96, indicating that its stock price is 196% more volatile than the S&P 500. Comparatively, Ashland has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
The Chemours pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Ashland pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. The Chemours pays out 17.8% of its earnings in the form of a dividend. Ashland pays out 36.9% 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. The Chemours is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares The Chemours and Ashland’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Chemours||$6.18 billion||1.51||$746.00 million||$3.82||13.77|
|Ashland||$3.26 billion||1.48||$1.00 million||$2.44||31.66|
The Chemours has higher revenue and earnings than Ashland. The Chemours is trading at a lower price-to-earnings ratio than Ashland, indicating that it is currently the more affordable of the two stocks.
This table compares The Chemours and Ashland’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for The Chemours and Ashland, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
The Chemours presently has a consensus price target of $60.94, indicating a potential upside of 15.84%. Ashland has a consensus price target of $85.56, indicating a potential upside of 10.75%. Given The Chemours’ higher probable upside, research analysts clearly believe The Chemours is more favorable than Ashland.
Institutional & Insider Ownership
80.5% of The Chemours shares are owned by institutional investors. Comparatively, 92.4% of Ashland shares are owned by institutional investors. 1.8% of The Chemours shares are owned by insiders. Comparatively, 1.1% of Ashland shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
The Chemours beats Ashland on 12 of the 16 factors compared between the two stocks.
The Chemours Company Profile
The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Fluoroproducts, and Chemical Solutions. The Titanium Technologies segment manufactures and sells titanium dioxide under the Ti-Pure and BaiMax brands for various applications in architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride window profiles, laminate papers used for furniture and building materials, and coated papers and paperboards used for packaging. The Fluoroproducts segment provides fluoroproducts, including refrigerants, and industrial fluoropolymer resins and derivatives under the Teflon, Viton, Krytox, and Nafion brand names. The Chemical Solutions segment offers industrial and specialty chemicals for gold production, oil and gas, water treatment, electronics, and automotive industries. It also provides sodium cyanide through its mining solutions business; and performance chemicals and intermediates, such as methylamines, glycolic acid, and Vazo free radical initiators. The Chemours Company was founded in 2014 and is headquartered in Wilmington, Delaware.
Ashland Company Profile
Ashland Global Holdings Inc. provides specialty chemical solutions worldwide. Its Specialty Ingredients segment provides products, technologies, and resources for solving formulation and product-performance challenges. It offers solutions using natural, synthetic, and semisynthetic polymers derived from plant and seed extract, cellulose ethers, vinyl pyrrolidones, and acrylic polymers, as well as polyester and polyurethane-based adhesives. This segment offers its solutions for pharmaceutical companies; makers of personal care products, food, and beverages; manufacturers of paint, coatings, and construction materials; makers of nutraceuticals and supplements; packaging and converting markets; and oilfield service companies. The company's Composites segment manufactures and sells a range of unsaturated polyester and vinyl ester resins, gelcoats, and low-profile additives for the reinforced plastics industry; and molten maleic anhydride for the manufacture of various products, such as unsaturated polyester resins, copolymers, lubricating oil additives, alkenyl succinic anhydrides, malic acid, fumaric acid, and derivative chemicals. This segment serves manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boat builders; chemical producers; and electronics makers. Its Intermediates and Solvents segment produces 1,4 butanediol and related derivatives, including tetrahydrofuran and n-methylpyrrolidone that are used as chemical intermediates in the production of engineering polymers and polyurethanes, as well as specialty process solvents used in electronics, pharmaceuticals, water filtration membranes, and others. The company was formerly known as Ashland Inc. and changed its name to Ashland Global Holdings Inc. in September 2016. Ashland Global Holdings Inc. was founded in 1924 and is headquartered in Covington, Kentucky.
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