Cabot Corporation (NYSE: CBT) is one of 52 publicly-traded companies in the “Specialty Chemicals” industry, but how does it contrast to its rivals? We will compare Cabot Corporation to related businesses based on the strength of its earnings, profitability, valuation, risk, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Cabot Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cabot Corporation $2.61 billion $488.00 million 14.95
Cabot Corporation Competitors $1.95 billion $301.80 million 16.43

Cabot Corporation has higher revenue and earnings than its rivals. Cabot Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Cabot Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Corporation 8.61% 16.03% 7.24%
Cabot Corporation Competitors -2.31% 9.09% 4.11%

Analyst Ratings

This is a breakdown of current ratings for Cabot Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Corporation 0 1 4 0 2.80
Cabot Corporation Competitors 255 1203 1314 33 2.40

Cabot Corporation presently has a consensus target price of $60.60, suggesting a potential upside of 13.57%. As a group, “Specialty Chemicals” companies have a potential upside of 4.42%. Given Cabot Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Cabot Corporation is more favorable than its rivals.

Insider and Institutional Ownership

84.3% of Cabot Corporation shares are held by institutional investors. Comparatively, 70.0% of shares of all “Specialty Chemicals” companies are held by institutional investors. 2.5% of Cabot Corporation shares are held by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Cabot Corporation has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Cabot Corporation’s rivals have a beta of 1.58, meaning that their average stock price is 58% more volatile than the S&P 500.

Dividends

Cabot Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.4%. Cabot Corporation pays out 35.3% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.1% of their earnings in the form of a dividend. Cabot Corporation has increased its dividend for 5 consecutive years.

Summary

Cabot Corporation beats its rivals on 10 of the 15 factors compared.

Cabot Corporation Company Profile

Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through four business segments: reinforcement materials, performance chemicals, purification solutions and specialty fluids. Reinforcement materials’ rubber grade carbon blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Its rubber blacks products are used in tires and industrial products. Performance Chemicals consists of two businesses: specialty carbons and formulations business, and metal oxides business. Purification Solutions’ activated carbon products are used for the purification of water, air and pharmaceuticals, among others, as either a colorant or a decolorizing agent in the production of food and beverage applications. Its specialty fluids segment produces and markets cesium formate as a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction.

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