Orion Engineered Carbons S.A (NYSE: OEC) and Terravia Holdings (NASDAQ:TVIA) are both small-cap specialty chemicals – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

37.9% of Orion Engineered Carbons S.A shares are owned by institutional investors. Comparatively, 43.4% of Terravia Holdings shares are owned by institutional investors. 10.1% of Terravia Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Orion Engineered Carbons S.A and Terravia Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Engineered Carbons S.A 5.50% 137.36% 8.91%
Terravia Holdings -413.48% N/A -61.89%

Analyst Recommendations

This is a summary of current ratings for Orion Engineered Carbons S.A and Terravia Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Engineered Carbons S.A 0 1 4 0 2.80
Terravia Holdings 0 1 0 0 2.00

Orion Engineered Carbons S.A presently has a consensus target price of $25.40, suggesting a potential upside of 8.78%. Terravia Holdings has a consensus target price of $1.50, suggesting a potential upside of 3,659.40%. Given Terravia Holdings’ higher possible upside, analysts clearly believe Terravia Holdings is more favorable than Orion Engineered Carbons S.A.

Volatility and Risk

Orion Engineered Carbons S.A has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Terravia Holdings has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Dividends

Orion Engineered Carbons S.A pays an annual dividend of $0.81 per share and has a dividend yield of 3.5%. Terravia Holdings does not pay a dividend. Orion Engineered Carbons S.A pays out 65.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Orion Engineered Carbons S.A and Terravia Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Orion Engineered Carbons S.A $1.14 billion 1.21 $49.38 million $1.23 18.98
Terravia Holdings N/A N/A N/A ($1.14) -0.04

Orion Engineered Carbons S.A has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than Orion Engineered Carbons S.A, indicating that it is currently the more affordable of the two stocks.

Summary

Orion Engineered Carbons S.A beats Terravia Holdings on 8 of the 13 factors compared between the two stocks.

About Orion Engineered Carbons S.A

Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.

About Terravia Holdings

Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.

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