Analyzing Chemours Company (The) (CC) and Trecora Resources (TREC)
Chemours Company (The) (NYSE: CC) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
72.9% of Chemours Company (The) shares are owned by institutional investors. Comparatively, 41.6% of Trecora Resources shares are owned by institutional investors. 1.1% of Chemours Company (The) 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Trecora Resources does not pay a dividend. Chemours Company (The) pays out 8.1% of its earnings in the form of a dividend.
This table compares Chemours Company (The) and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chemours Company (The)||4.96%||122.97%||6.77%|
This is a breakdown of current ratings for Chemours Company (The) and Trecora Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chemours Company (The)||0||0||6||0||3.00|
Chemours Company (The) presently has a consensus target price of $51.83, indicating a potential upside of 0.06%. Trecora Resources has a consensus target price of $15.67, indicating a potential upside of 23.36%. Given Trecora Resources’ higher possible upside, analysts clearly believe Trecora Resources is more favorable than Chemours Company (The).
Risk and Volatility
Chemours Company (The) has a beta of 3.64, indicating that its share price is 264% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Earnings & Valuation
This table compares Chemours Company (The) and Trecora Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chemours Company (The)||$5.74 billion||1.67||$1.07 billion||$1.48||35.00|
|Trecora Resources||$229.00 million||1.35||$26.34 million||$0.09||141.13|
Chemours Company (The) has higher revenue and earnings than Trecora Resources. Chemours Company (The) is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Chemours Company (The) beats Trecora Resources on 11 of the 15 factors compared between the two stocks.
About Chemours Company (The)
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
About Trecora Resources
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and 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. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
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