Head to Head Survey: Methanex Corporation (MEOH) vs. Braskem (BAK)
Methanex Corporation (NASDAQ: MEOH) and Braskem (NYSE:BAK) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Risk & Volatility
Methanex Corporation has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Braskem has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Methanex Corporation and Braskem, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Methanex Corporation currently has a consensus price target of $58.31, indicating a potential upside of 16.73%. Braskem has a consensus price target of $20.00, indicating a potential downside of 21.20%. Given Methanex Corporation’s higher possible upside, equities research analysts plainly believe Methanex Corporation is more favorable than Braskem.
Valuation and Earnings
This table compares Methanex Corporation and Braskem’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Methanex Corporation||$2.58 billion||1.67||$572.88 million||$2.51||19.90|
|Braskem||$15.27 billion||0.66||$3.73 billion||N/A||N/A|
Braskem has higher revenue and earnings than Methanex Corporation.
Insider and Institutional Ownership
81.9% of Methanex Corporation shares are held by institutional investors. Comparatively, 0.7% of Braskem shares are held by institutional investors. 1.0% of Methanex Corporation shares are held by company insiders. Comparatively, 0.0% of Braskem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Methanex Corporation and Braskem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Methanex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Braskem pays an annual dividend of $0.77 per share and has a dividend yield of 3.0%. Methanex Corporation pays out 47.8% of its earnings in the form of a dividend.
Methanex Corporation beats Braskem on 9 of the 15 factors compared between the two stocks.
Methanex Corporation Company Profile
Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.
Braskem Company Profile
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.
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