Trinseo (NYSE: TSE) and Cytec Industries (NYSE:CYT) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.0%. Cytec Industries does not pay a dividend. Trinseo pays out 22.5% of its earnings in the form of a dividend. Trinseo has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

97.8% of Trinseo shares are held by institutional investors. 0.3% of Trinseo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Trinseo and Cytec Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trinseo 6.78% 67.62% 13.76%
Cytec Industries 11.96% 18.60% 8.55%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Trinseo and Cytec Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 3 0 2.60
Cytec Industries 0 0 0 0 N/A

Trinseo presently has a consensus target price of $74.25, indicating a potential upside of 2.56%.

Valuation and Earnings

This table compares Trinseo and Cytec Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Trinseo $3.72 billion 0.85 $318.31 million $6.39 11.33
Cytec Industries N/A N/A N/A N/A N/A

Trinseo has higher revenue and earnings than Cytec Industries.

Summary

Trinseo beats Cytec Industries on 8 of the 10 factors compared between the two stocks.

Trinseo Company Profile

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

Cytec Industries Company Profile

Cytec Industries Inc. is a global specialty materials and chemicals company focused on developing, manufacturing and selling value-added products. The Company offers aerospace and industrial materials, mining and plastics industries. The Company operates through four segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials, which serve automotive, motorsports, recreation, tooling, and other structural materials markets and process materials, which serves aerospace, wind energy, and other process materials markets. The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives, and formulated resins. The Company operates as a wholly owned subsidiary of Solvay.

Receive News & Ratings for Trinseo S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Trinseo S.A. and related companies with MarketBeat.com's FREE daily email newsletter.