Terravia Holdings (NASDAQ: TVIA) and Trinseo (NYSE:TSE) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Terravia Holdings and Trinseo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terravia Holdings 0 1 0 0 2.00
Trinseo 0 2 3 0 2.60

Terravia Holdings currently has a consensus price target of $1.50, suggesting a potential upside of 3,659.40%. Trinseo has a consensus price target of $74.25, suggesting a potential upside of 11.99%. Given Terravia Holdings’ higher possible upside, research analysts clearly believe Terravia Holdings is more favorable than Trinseo.

Earnings and Valuation

This table compares Terravia Holdings and Trinseo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Terravia Holdings N/A N/A N/A ($1.10) -0.04
Trinseo $4.10 billion 0.71 $477.25 million $7.08 9.36

Trinseo has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than Trinseo, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

43.4% of Terravia Holdings shares are held by institutional investors. Comparatively, 97.8% of Trinseo shares are held by institutional investors. 10.1% of Terravia Holdings shares are held by company insiders. Comparatively, 0.7% of Trinseo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.2%. Terravia Holdings does not pay a dividend. Trinseo pays out 20.3% of its earnings in the form of a dividend.

Profitability

This table compares Terravia Holdings and Trinseo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terravia Holdings -413.48% N/A -61.89%
Trinseo 7.88% 67.05% 13.27%

Risk and Volatility

Terravia Holdings has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Trinseo has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500.

Summary

Trinseo beats Terravia Holdings on 10 of the 13 factors compared between the two stocks.

About Terravia Holdings

Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.

About Trinseo

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

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