Comparing A. Schulman (SHLM) & Trecora Resources (TREC)
A. Schulman (NASDAQ: SHLM) and Trecora Resources (NYSE:TREC) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
84.2% of A. Schulman shares are owned by institutional investors. Comparatively, 41.6% of Trecora Resources shares are owned by institutional investors. 4.1% of A. Schulman shares are owned by company insiders. Comparatively, 6.6% of Trecora Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares A. Schulman and Trecora Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|A. Schulman||$2.42 billion||0.37||$207.01 million||($12.50)||-2.44|
|Trecora Resources||$229.00 million||1.33||$26.34 million||$0.09||138.90|
A. Schulman has higher revenue and earnings than Trecora Resources. A. Schulman is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
A. Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 2.7%. Trecora Resources does not pay a dividend. A. Schulman pays out -6.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for A. Schulman and Trecora Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
A. Schulman currently has a consensus price target of $35.00, suggesting a potential upside of 14.75%. Trecora Resources has a consensus price target of $15.67, suggesting a potential upside of 25.33%. Given Trecora Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Trecora Resources is more favorable than A. Schulman.
This table compares A. Schulman and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
A. Schulman has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.
Trecora Resources beats A. Schulman on 8 of the 15 factors compared between the two stocks.
A. Schulman Company Profile
A. Schulman, Inc. is an international supplier of plastic formulations, resins and services, and provides solutions to its customers’ requirements through custom-formulated products. The Company’s customers span a range of markets, such as packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, and sports, home and leisure. The Company’s segments include Europe, Middle East and Africa (EMEA), the United States and Canada (USCAN), Latin America (LATAM), Asia Pacific (APAC) and Engineered Composites (EC). As of August 31, 2016, the Company operated in six product families, including custom performance colors (CPC), engineered composites, Masterbatch solutions, engineered plastics, specialty powders and distribution services. The CPC product family offers powdered, pelletized and liquid color concentrates that are custom-designed for thermoplastic resins.
Trecora Resources Company Profile
Trecora Resources is engaged in manufacturing of specialty petrochemical products and synthetic waxes, and providing custom processing services. The Company operates through two segments: manufacturing of various specialty petrochemical products and manufacturing of specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. TC provides custom manufacturing, distillation, blending, forming, and packaging of finished and intermediate products, and wax products for coatings, hot melt adhesives and lubricants.
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