Huntsman (NYSE: HUN) and Versum Materials (NYSE:VSM) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Huntsman and Versum Materials’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Huntsman $9.84 billion 0.71 $1.18 billion $1.76 16.47
Versum Materials $1.08 billion 3.94 $355.80 million N/A N/A

Huntsman has higher revenue and earnings than Versum Materials.

Dividends

Huntsman pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Huntsman pays out 28.4% of its earnings in the form of a dividend.

Profitability

This table compares Huntsman and Versum Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntsman 7.03% 43.21% 7.70%
Versum Materials 17.91% -261.88% 18.25%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Huntsman and Versum Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntsman 0 1 7 0 2.88
Versum Materials 0 4 6 0 2.60

Huntsman currently has a consensus target price of $30.50, suggesting a potential upside of 5.24%. Versum Materials has a consensus target price of $38.11, suggesting a potential downside of 2.63%. Given Huntsman’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Huntsman is more favorable than Versum Materials.

Institutional & Insider Ownership

75.1% of Huntsman shares are owned by institutional investors. Comparatively, 89.6% of Versum Materials shares are owned by institutional investors. 19.0% of Huntsman shares are owned by company insiders. Comparatively, 0.5% of Versum Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Huntsman beats Versum Materials on 8 of the 13 factors compared between the two stocks.

Huntsman Company Profile

Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.

Versum Materials Company Profile

Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.

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