Cytec Industries (CYT) and Cabot Corporation (CBT) Head-To-Head Comparison

Cytec Industries (NYSE: CYT) and Cabot Corporation (NYSE:CBT) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Cytec Industries and Cabot Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytec Industries 11.96% 18.60% 8.55%
Cabot Corporation 8.87% 15.11% 6.96%

Earnings & Valuation

This table compares Cytec Industries and Cabot Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cytec Industries N/A N/A N/A $1.78 42.23
Cabot Corporation $2.72 billion 1.38 $241.00 million $3.81 15.90

Cabot Corporation has higher revenue and earnings than Cytec Industries. Cabot Corporation is trading at a lower price-to-earnings ratio than Cytec Industries, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.8% of Cabot Corporation shares are owned by institutional investors. 2.5% of Cabot Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cytec Industries and Cabot Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytec Industries 0 0 0 0 N/A
Cabot Corporation 0 3 4 0 2.57

Cabot Corporation has a consensus price target of $61.33, suggesting a potential upside of 1.23%. Given Cabot Corporation’s higher possible upside, analysts clearly believe Cabot Corporation is more favorable than Cytec Industries.

Dividends

Cabot Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.1%. Cytec Industries does not pay a dividend. Cabot Corporation pays out 33.1% of its earnings in the form of a dividend. Cytec Industries has raised its dividend for 3 consecutive years and Cabot Corporation has raised its dividend for 5 consecutive years.

Summary

Cabot Corporation beats Cytec Industries on 8 of the 12 factors compared between the two stocks.

About Cytec Industries

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.

About Cabot Corporation

Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through four business segments: reinforcement materials, performance chemicals, purification solutions and specialty fluids. Reinforcement materials’ rubber grade carbon blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Its rubber blacks products are used in tires and industrial products. Performance Chemicals consists of two businesses: specialty carbons and formulations business, and metal oxides business. Purification Solutions’ activated carbon products are used for the purification of water, air and pharmaceuticals, among others, as either a colorant or a decolorizing agent in the production of food and beverage applications. Its specialty fluids segment produces and markets cesium formate as a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction.

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