Critical Contrast: Huntsman Corporation (HUN) and Valvoline (NYSE:VVV)
Huntsman Corporation (NYSE: HUN) and Valvoline (NYSE:VVV) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitabiliy, valuation, analyst recommendations, institutional ownership, earnings and risk.
This table compares Huntsman Corporation and Valvoline’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
71.7% of Huntsman Corporation shares are held by institutional investors. Comparatively, 27.2% of Valvoline shares are held by institutional investors. 19.0% of Huntsman Corporation shares are held by insiders. Comparatively, 0.1% of Valvoline shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.9%. Valvoline pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Huntsman Corporation pays out 35.0% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Huntsman Corporation and Valvoline, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Huntsman Corporation currently has a consensus price target of $28.00, suggesting a potential upside of 4.79%. Valvoline has a consensus price target of $26.10, suggesting a potential upside of 12.74%. Given Valvoline’s higher probable upside, analysts plainly believe Valvoline is more favorable than Huntsman Corporation.
Valuation and Earnings
This table compares Huntsman Corporation and Valvoline’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Huntsman Corporation||$9.77 billion||0.66||$1.12 billion||$1.43||18.69|
|Valvoline||$2.00 billion||2.37||$511.00 million||N/A||N/A|
Huntsman Corporation has higher revenue and earnings than Valvoline.
Huntsman Corporation beats Valvoline on 8 of the 13 factors compared between the two stocks.
Huntsman Corporation Company Profile
Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.
Valvoline Company Profile
Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.
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