Critical Review: Sensient Technologies Corporation (SXT) versus Platform Specialty Products Corporation (PAH)
Sensient Technologies Corporation (NYSE: SXT) and Platform Specialty Products Corporation (NYSE:PAH) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Sensient Technologies Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Platform Specialty Products Corporation does not pay a dividend. Sensient Technologies Corporation pays out 48.4% of its earnings in the form of a dividend. Sensient Technologies Corporation has increased its dividend for 5 consecutive years.
Risk & Volatility
Sensient Technologies Corporation has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Platform Specialty Products Corporation has a beta of 3.31, suggesting that its share price is 231% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Sensient Technologies Corporation and Platform Specialty Products Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sensient Technologies Corporation||0||0||2||0||3.00|
|Platform Specialty Products Corporation||0||2||6||0||2.75|
Sensient Technologies Corporation presently has a consensus target price of $89.15, indicating a potential upside of 13.94%. Platform Specialty Products Corporation has a consensus target price of $13.00, indicating a potential upside of 13.74%. Given Sensient Technologies Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sensient Technologies Corporation is more favorable than Platform Specialty Products Corporation.
Earnings and Valuation
This table compares Sensient Technologies Corporation and Platform Specialty Products Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sensient Technologies Corporation||$1.36 billion||2.52||$247.07 million||$2.48||31.55|
|Platform Specialty Products Corporation||$3.64 billion||0.90||$732.30 million||($0.44)||-25.98|
Platform Specialty Products Corporation has higher revenue and earnings than Sensient Technologies Corporation. Platform Specialty Products Corporation is trading at a lower price-to-earnings ratio than Sensient Technologies Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.0% of Sensient Technologies Corporation shares are owned by institutional investors. Comparatively, 93.9% of Platform Specialty Products Corporation shares are owned by institutional investors. 1.0% of Sensient Technologies Corporation shares are owned by insiders. Comparatively, 6.0% of Platform Specialty Products Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Sensient Technologies Corporation and Platform Specialty Products Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sensient Technologies Corporation||8.16%||17.15%||8.75%|
|Platform Specialty Products Corporation||-0.26%||7.15%||2.05%|
Sensient Technologies Corporation beats Platform Specialty Products Corporation on 9 of the 16 factors compared between the two stocks.
About Sensient Technologies Corporation
Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.
About Platform Specialty Products Corporation
Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers plating products that are used to plate holes; electroless nickel products, which are applied to various metal and plastic surfaces; electronic assembly materials for use in the electronic market and residential boiler systems; final finishes that are used on printed circuit boards; circuit formation products for surface preparation; oxides, which are used in the fabrication of multilayer circuit boards; semiconductor materials and packaging products; and pre-treatment and cleaning solutions. This segment also provides functional conversion coatings that are applied to metals to enhance corrosion resistance and paint adhesion; hard-coated films, which are used for the membrane switch in the touch screen markets; production and drilling fluids used in subsea control systems; solid sheet printing elements for use in flexographic printing and platemaking processes; liquid products to produce printing plates; and printing equipment. The Agricultural Solutions segment offers fungicides and biofungicides to prevent the spread of fungi and other diseases in crops; herbicides to control unwanted plants; insecticides, bioinsecticides, and acaricides; biostimulants and nutrition products; and seed treatment products, which are applied to seed before planting, as well as animal health products, such as honey bee protective miticides and veterinary vaccines. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in West Palm Beach, Florida.
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