Critical Contrast: Ashland Global Holdings (ASH) & Tronox (TROX)
Tronox (NASDAQ: TROX) and Ashland Global Holdings (NYSE:ASH) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares Tronox and Ashland Global Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tronox||$2.27 billion||1.33||$394.00 million||N/A||N/A|
|Ashland Global Holdings||$5.06 billion||0.82||$719.00 million||($3.54)||-18.69|
This table compares Tronox and Ashland Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashland Global Holdings||-4.71%||10.62%||3.70%|
This is a summary of recent ratings and recommmendations for Tronox and Ashland Global Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashland Global Holdings||0||2||2||0||2.50|
Ashland Global Holdings has a consensus price target of $83.50, indicating a potential upside of 26.23%. Given Ashland Global Holdings’ higher probable upside, analysts plainly believe Ashland Global Holdings is more favorable than Tronox.
Institutional & Insider Ownership
92.5% of Ashland Global Holdings shares are owned by institutional investors. 1.3% of Ashland Global Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Ashland Global Holdings pays an annual dividend of $0.90 per share and has a dividend yield of 1.4%. Tronox does not pay a dividend. Ashland Global Holdings pays out -25.4% of its earnings in the form of a dividend. Ashland Global Holdings has increased its dividend for 7 consecutive years.
Ashland Global Holdings beats Tronox on 11 of the 14 factors compared between the two stocks.
Tronox Company Profile
Tronox Limited produces and markets titanium bearing mineral sands and titanium dioxide (TiO2) pigment in North America, Europe, South Africa, and the Asia-Pacific region. It primarily operates in two segments, TiO2 and Alkali. The TiO2 segment engages in the exploration, mining, and beneficiation of mineral sands deposits. This segment produces titanium feedstock, including chloride slag, ilmenite, leucoxene, titanium slag, slag fines, synthetic rutile, and leucoxene, as well as pig iron and zircon; and produces and markets TiO2 under the TRONOX brand name, which is used in the manufacture of paint and other coatings, and plastics and paper, as well as in various other applications comprising inks, fibers, rubber, food, cosmetics, and pharmaceuticals. It also manufactures and markets electrolytic manganese dioxide primarily for battery materials; and specialty boron products for semiconductors, pharmaceuticals, high-performance fibers, specialty ceramics, and epoxies, as well as igniter formulations. The Alkali segment produces natural soda ash for various industries comprising flat glass, container glass, detergent, and chemical manufacturing. This segment is involved in dry mining of trona ore underground at Westvaco facility; secondary recovery of trona from previously dry mined areas underground at Westvaco and Granger facilities; refining of raw trona ore into soda ash and specialty sodium alkali products; and marketing, sale, and distribution of alkali products. Tronox Limited was founded in 2005 and is based in Stamford, Connecticut.
Ashland Global Holdings Company Profile
Ashland Inc. is engaged in specialty chemicals, and through Valvoline, is a consumer-branded lubricant supplier. The Company operates in three segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. Its Specialty Ingredients segment is engaged in providing cellulose ethers, vinyl pyrrolidones and biofunctionals, and consists of two divisions: Consumer Specialties and Industrial Specialties. Its Performance Materials segment is engaged in providing unsaturated polyester resins and vinyl ester resins, and consists of two divisions: Composites and Intermediates/Solvents. Its Valvoline segment is engaged in producing and distributing automotive, commercial and industrial lubricants, and automotive chemicals. Its chemistry is used in various markets and applications, including architectural coatings, adhesives, automotive, construction, energy and pharmaceutical.
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