Olin (NYSE: OLN) and PQ Group (NYSE:PQG) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Insider and Institutional Ownership
89.7% of Olin shares are held by institutional investors. Comparatively, 58.3% of PQ Group shares are held by institutional investors. 2.9% of Olin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Olin and PQ Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Olin||$5.55 billion||1.14||-$3.90 million||$0.46||82.76|
|PQ Group||$1.06 billion||2.15||-$79.74 million||$0.04||422.25|
Olin has higher revenue and earnings than PQ Group. Olin is trading at a lower price-to-earnings ratio than PQ Group, indicating that it is currently the more affordable of the two stocks.
Olin pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. PQ Group does not pay a dividend. Olin pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Olin and PQ Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Olin and PQ Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Olin currently has a consensus price target of $39.88, suggesting a potential upside of 4.74%. PQ Group has a consensus price target of $19.75, suggesting a potential upside of 16.93%. Given PQ Group’s higher probable upside, analysts clearly believe PQ Group is more favorable than Olin.
Olin beats PQ Group on 11 of the 15 factors compared between the two stocks.
Olin Company Profile
Olin Corporation is a manufacturer and distributor of chemical products, and ammunition. The Company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products, such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
PQ Group Company Profile
PQ Group Holdings Inc is a global provider of catalysts, specialty materials, chemicals and services that enable environmental improvements. The Company’s products and solutions help companies produce vehicles with fuel efficiency. The Company has developed zeolite-based catalysts to reduce pollutants in diesel engines. The Company’s segments include environmental catalysts and services, and performance materials and chemicals. Environmental catalysts and services segment has three product groups, including silica catalysts, zeolite catalysts, and refining services. Silica catalysts product group sells both the finished catalyst and catalysts supports, for the production of high-density polyethylene (HDPE).zeolite catalysts product group is a supplier of emissions control catalysts as well as a supplier of specialty catalysts, precursors, and formulations. Performance materials and chemicals segment has two product groups, including performance materials and performance chemicals.
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