Axiall Corp (NYSE: GGC) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Axiall Corp and Trecora Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axiall Corp 0 0 0 0 N/A
Trecora Resources 0 0 3 0 3.00

Trecora Resources has a consensus price target of $15.67, suggesting a potential upside of 23.85%. Given Trecora Resources’ higher probable upside, analysts plainly believe Trecora Resources is more favorable than Axiall Corp.

Earnings and Valuation

This table compares Axiall Corp and Trecora Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Axiall Corp N/A N/A N/A N/A N/A
Trecora Resources $229.00 million 1.34 $26.34 million $0.09 140.57

Trecora Resources has higher revenue and earnings than Axiall Corp.

Profitability

This table compares Axiall Corp and Trecora Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axiall Corp -3.52% -7.36% -2.47%
Trecora Resources 0.97% 3.94% 2.23%

Insider and Institutional Ownership

41.6% of Trecora Resources shares are held by institutional investors. 6.6% of Trecora Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Trecora Resources beats Axiall Corp on 8 of the 8 factors compared between the two stocks.

About Axiall Corp

Axiall Corporation (Axiall) is a manufacturer and international marketer of chemicals and building products. The Company operates through two segments: chlorovinyls and building products. Its products include chlorine, caustic soda, vinyl chloride monomer, siding and exterior accessories, and pipe and pipe fittings, among others. The Company’s chlorovinyls segment produces a chain of products, including chlor-alkali and derivative products, such as vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) (EDC), chlorinated solvents, calcium hypochlorite, hydrochloric acid (HCL) and phosgene derivatives, and compound products, such as vinyl compounds and compound additives and plasticizers. The Company’s building products segment consists of over two primary product groups: window and door profiles and trim, moldings and deck products, and outdoor building products, which includes siding and exterior accessories, pipe and pipe fittings.

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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