PetroLogistics (NYSE: PDH) and Celanese (NYSE:CE) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
This is a breakdown of recent ratings and recommmendations for PetroLogistics and Celanese, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider & Institutional Ownership
96.2% of Celanese shares are owned by institutional investors. 0.4% of Celanese shares are owned 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.
Celanese pays an annual dividend of $1.84 per share and has a dividend yield of 1.7%. PetroLogistics does not pay a dividend. Celanese pays out 32.1% of its earnings in the form of a dividend. PetroLogistics has increased its dividend for 5 consecutive years.
Valuation & Earnings
This table compares PetroLogistics and Celanese’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Celanese||$5.39 billion||2.68||$900.00 million||$5.73||18.58|
Celanese has higher revenue and earnings than PetroLogistics. PetroLogistics is trading at a lower price-to-earnings ratio than Celanese, indicating that it is currently the more affordable of the two stocks.
This table compares PetroLogistics and Celanese’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Celanese beats PetroLogistics on 10 of the 12 factors compared between the two stocks.
PetroLogistics Company Profile
PetroLogistics LP owns and operates propane dehydrogenation (PDH) facility. The Company is located in the vicinity of the Houston Ship Channel. As of April 23, 2012, the Company had an annual production capacity of approximately 1.45 billion pounds of propylene. Its PDH facility uses a CATOFIN dehydrogenation technology pursuant to a fully-paid license from CB&I Lummus. It derives its sales from three different sources: propylene sales, hydrogen sales, and mixed stream of butane and butylenes (C4 mix stream) and heavier hydrocarbons (C5+ stream) sales. In July 2014, Flint Hills Resources acquired PetroLogistics LP (PetroLogistics) and general partner, PetroLogistics GP LLC (MLP GP).
Celanese Company Profile
Celanese Corporation (Celanese) is a technology and specialty materials company. The Company’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, Acetyl Intermediates and Other Activities. The Advanced Engineered Materials segment includes the Company’s engineered materials business and certain affiliates. The Consumer Specialties segment includes the Company’s cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. The Industrial Specialties segment includes the Company’s emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses. The Acetyl Intermediates segment includes the Company’s intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. The Company has operations in North America, Europe and Asia. As of December 31, 2016, the Company had 30 global production facilities.
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