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

Institutional & Insider Ownership

97.8% of Kraton Corporation shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 5.0% of Kraton Corporation shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Kraton Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kraton Corporation $1.85 billion $338.62 million 30.19
Kraton Corporation Competitors $1.96 billion $301.95 million 16.51

Kraton Corporation’s rivals have higher revenue, but lower earnings than Kraton Corporation. Kraton Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraton Corporation 0 1 1 0 2.50
Kraton Corporation Competitors 259 1220 1339 34 2.40

Kraton Corporation presently has a consensus price target of $65.00, suggesting a potential upside of 56.02%. As a group, “Specialty Chemicals” companies have a potential downside of 3.59%. Given Kraton Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kraton Corporation is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Kraton Corporation 2.36% 9.52% 1.69%
Kraton Corporation Competitors -2.47% 8.99% 4.06%

Risk and Volatility

Kraton Corporation has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Kraton Corporation’s rivals have a beta of 1.59, indicating that their average share price is 59% more volatile than the S&P 500.

Summary

Kraton Corporation beats its rivals on 8 of the 13 factors compared.

About Kraton Corporation

Kraton Corporation, formerly Kraton Performance Polymers, Inc., is a specialty chemicals company. The Company manufactures styrenic block copolymers (SBCs) and other engineered polymers. The Company also produces specialty products primarily derived from pine wood pulping co-products. The Company operates through two segments: Polymer Segment, which comprises SBCs and other engineered polymers business, and Chemical Segment, which comprises pine-based specialty products business. Its SBCs are used in a range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing and footwear products. The Company also sells isoprene rubber (IR) and isoprene rubber latex (IRL), which are non-SBC products primarily used in applications, such as medical products, personal care, adhesives, tackifiers, paints and coatings. It offers crude tall oil (CTO) and crude sulfate turpentine (CST).

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