Financial Contrast: Orion Engineered Carbons S.A (NYSE:OEC) & W.R. Grace & Co. (GRA)
W.R. Grace & Co. (NYSE: GRA) and Orion Engineered Carbons S.A (NYSE:OEC) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitabiliy, institutional ownership, dividends, earnings and analyst recommendations.
W.R. Grace & Co. pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Orion Engineered Carbons S.A pays an annual dividend of $0.75 per share and has a dividend yield of 3.4%. W.R. Grace & Co. pays out 44.2% of its earnings in the form of a dividend. Orion Engineered Carbons S.A pays out 87.2% 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 W.R. Grace & Co. and Orion Engineered Carbons S.A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|W.R. Grace & Co.||8.08%||40.62%||6.03%|
|Orion Engineered Carbons S.A||4.30%||152.70%||8.70%|
Earnings and Valuation
This table compares W.R. Grace & Co. and Orion Engineered Carbons S.A’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|W.R. Grace & Co.||$1.63 billion||3.01||$384.00 million||$1.90||37.73|
|Orion Engineered Carbons S.A||$1.24 billion||1.06||$252.71 million||$0.86||25.87|
W.R. Grace & Co. has higher revenue and earnings than Orion Engineered Carbons S.A. Orion Engineered Carbons S.A is trading at a lower price-to-earnings ratio than W.R. Grace & Co., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.0% of W.R. Grace & Co. shares are owned by institutional investors. Comparatively, 38.4% of Orion Engineered Carbons S.A shares are owned by institutional investors. 1.3% of W.R. Grace & Co. 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.
Volatility & Risk
W.R. Grace & Co. has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Orion Engineered Carbons S.A has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
This is a summary of current ratings for W.R. Grace & Co. and Orion Engineered Carbons S.A, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|W.R. Grace & Co.||0||3||5||0||2.63|
|Orion Engineered Carbons S.A||0||0||3||0||3.00|
W.R. Grace & Co. currently has a consensus target price of $79.25, indicating a potential upside of 10.56%. Orion Engineered Carbons S.A has a consensus target price of $22.33, indicating a potential upside of 0.37%. Given W.R. Grace & Co.’s higher probable upside, equities research analysts clearly believe W.R. Grace & Co. is more favorable than Orion Engineered Carbons S.A.
W.R. Grace & Co. beats Orion Engineered Carbons S.A on 12 of the 16 factors compared between the two stocks.
About W.R. Grace & Co.
W. R. Grace & Co. (Grace) is engaged in the production and sale of specialty chemicals and specialty materials. The Company operates in two segments: Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. The Grace Materials Technologies segment includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. It Grace Catalysts Technologies segment produces and sells catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications, including Fluid catalytic cracking catalysts (FCC), Hydroprocessing catalysts (HPC), and Polyolefin catalysts and catalyst supports.
About Orion Engineered Carbons S.A
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
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