Braskem (BAK) versus Quaker Chemical Corporation (KWR) Financial Review
Braskem (NYSE: BAK) and Quaker Chemical Corporation (NYSE:KWR) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
0.8% of Braskem shares are owned by institutional investors. Comparatively, 82.6% of Quaker Chemical Corporation shares are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Comparatively, 3.6% of Quaker Chemical Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Braskem and Quaker Chemical Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Quaker Chemical Corporation||6.73%||15.52%||9.26%|
This is a summary of recent ratings and recommmendations for Braskem and Quaker Chemical Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Quaker Chemical Corporation||0||1||0||0||2.00|
Braskem presently has a consensus target price of $20.00, suggesting a potential downside of 16.77%. Quaker Chemical Corporation has a consensus target price of $153.00, suggesting a potential upside of 12.99%. Given Quaker Chemical Corporation’s higher possible upside, analysts plainly believe Quaker Chemical Corporation is more favorable than Braskem.
Earnings & Valuation
This table compares Braskem and Quaker Chemical Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Braskem||$15.47 billion||N/A||$2.91 billion||$2.55||9.42|
|Quaker Chemical Corporation||$777.77 million||2.32||$106.55 million||$3.93||34.46|
Braskem has higher revenue and earnings than Quaker Chemical Corporation. Braskem is trading at a lower price-to-earnings ratio than Quaker Chemical Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Braskem has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Quaker Chemical Corporation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Braskem pays an annual dividend of $0.77 per share and has a dividend yield of 3.2%. Quaker Chemical Corporation pays an annual dividend of $1.42 per share and has a dividend yield of 1.0%. Braskem pays out 30.2% of its earnings in the form of a dividend. Quaker Chemical Corporation pays out 36.1% 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. Braskem has increased its dividend for 7 consecutive years. Braskem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Quaker Chemical Corporation beats Braskem on 8 of the 15 factors compared between the two stocks.
Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.
About Quaker Chemical Corporation
Quaker Chemical Corporation is a provider of process fluids, chemical specialties, and technical expertise to a range of industries, including steel, aluminum, mining, aerospace, tube and pipe, cans and others. The Company’s segments include North America, Europe, Middle East and Africa (EMEA), Asia/Pacific and South America. It develops, produces, and markets a range of formulated chemical specialty products and offers chemical management services. Its products and services include rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts, which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life), and hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment).
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