Reviewing KMG Chemicals (KMG) and Platform Specialty Products Corporation (PAH)
KMG Chemicals (NYSE: KMG) and Platform Specialty Products Corporation (NYSE:PAH) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This is a summary of current ratings and target prices for KMG Chemicals and Platform Specialty Products Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platform Specialty Products Corporation||0||3||6||0||2.67|
KMG Chemicals presently has a consensus price target of $37.00, indicating a potential downside of 32.56%. Platform Specialty Products Corporation has a consensus price target of $13.11, indicating a potential upside of 20.62%. Given Platform Specialty Products Corporation’s higher probable upside, analysts clearly believe Platform Specialty Products Corporation is more favorable than KMG Chemicals.
This table compares KMG Chemicals and Platform Specialty Products Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platform Specialty Products Corporation||-0.26%||7.15%||2.05%|
Institutional and Insider Ownership
73.3% of KMG Chemicals shares are owned by institutional investors. Comparatively, 94.0% of Platform Specialty Products Corporation shares are owned by institutional investors. 6.9% of KMG Chemicals shares are owned by company insiders. Comparatively, 6.0% of Platform Specialty Products Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares KMG Chemicals 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|
|KMG Chemicals||$333.44 million||1.96||$59.91 million||$1.92||28.57|
|Platform Specialty Products Corporation||$3.64 billion||0.86||$732.30 million||($0.44)||-24.70|
Platform Specialty Products Corporation has higher revenue and earnings than KMG Chemicals. Platform Specialty Products Corporation is trading at a lower price-to-earnings ratio than KMG Chemicals, indicating that it is currently the more affordable of the two stocks.
KMG Chemicals pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Platform Specialty Products Corporation does not pay a dividend. KMG Chemicals pays out 6.3% of its earnings in the form of a dividend.
Risk & Volatility
KMG Chemicals has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Platform Specialty Products Corporation has a beta of 3.32, suggesting that its stock price is 232% more volatile than the S&P 500.
KMG Chemicals beats Platform Specialty Products Corporation on 9 of the 16 factors compared between the two stocks.
About KMG Chemicals
KMG Chemicals, Inc. manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals. The Company operates through its subsidiaries, KMG Electronic Chemicals, Inc. (KMG EC), KMG-Bernuth, Inc. (KMG Bernuth) and KMG Val-Tex, LLC (Val-Tex). The Company’s Electronic chemicals business sells high purity and ultra-purity wet process chemicals primarily to the semiconductor industry. The Company’s Other chemicals segment includes its industrial lubricants business and wood treating chemicals business. The Company’s products sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals.
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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