Platform Specialty Products (NYSE: PAH) and Trinseo (NYSE:TSE) 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 analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Risk and Volatility
Platform Specialty Products has a beta of 3.27, meaning that its stock price is 227% more volatile than the S&P 500. Comparatively, Trinseo has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500.
This table compares Platform Specialty Products and Trinseo’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Platform Specialty Products||$3.59 billion||0.80||-$73.70 million||($0.53)||-18.77|
|Trinseo||$3.72 billion||0.87||$318.31 million||$6.39||11.55|
Trinseo has higher revenue and earnings than Platform Specialty Products. Platform Specialty Products is trading at a lower price-to-earnings ratio than Trinseo, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Platform Specialty Products and Trinseo, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platform Specialty Products||0||3||6||0||2.67|
Platform Specialty Products currently has a consensus target price of $13.11, indicating a potential upside of 31.77%. Trinseo has a consensus target price of $76.25, indicating a potential upside of 3.32%. Given Platform Specialty Products’ stronger consensus rating and higher probable upside, analysts clearly believe Platform Specialty Products is more favorable than Trinseo.
Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.0%. Platform Specialty Products does not pay a dividend. Trinseo pays out 22.5% of its earnings in the form of a dividend.
Insider and Institutional Ownership
93.5% of Platform Specialty Products shares are held by institutional investors. Comparatively, 97.0% of Trinseo shares are held by institutional investors. 5.2% of Platform Specialty Products shares are held by company insiders. Comparatively, 0.3% of Trinseo shares are held 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.
This table compares Platform Specialty Products and Trinseo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platform Specialty Products||-4.12%||7.45%||2.15%|
Trinseo beats Platform Specialty Products on 9 of the 16 factors compared between the two stocks.
About Platform Specialty Products
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.
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.
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