Braskem (NYSE: BAK) and Axiall (NYSE:AXLL) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings and Valuation

This table compares Braskem and Axiall’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Braskem $13.74 billion 0.79 -$117.96 million N/A N/A
Axiall N/A N/A N/A ($12.69) -2.60

Axiall has lower revenue, but higher earnings than Braskem.

Analyst Ratings

This is a summary of recent ratings and target prices for Braskem and Axiall, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braskem 0 0 1 0 3.00
Axiall 0 0 0 0 N/A

Dividends

Axiall pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Braskem does not pay a dividend. Axiall pays out -5.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.6% of Braskem shares are owned by institutional investors. 0.0% of Braskem shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Braskem and Axiall’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braskem 3.07% 28.41% 2.59%
Axiall -3.52% -7.36% -2.47%

Summary

Braskem beats Axiall on 7 of the 9 factors compared between the two stocks.

About Braskem

Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.

About Axiall

Axiall Corporation (Axiall) is a manufacturer and international marketer of chemicals and building products. The Company operates through two segments: chlorovinyls and building products. Its products include chlorine, caustic soda, vinyl chloride monomer, siding and exterior accessories, and pipe and pipe fittings, among others. The Company’s chlorovinyls segment produces a chain of products, including chlor-alkali and derivative products, such as vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) (EDC), chlorinated solvents, calcium hypochlorite, hydrochloric acid (HCL) and phosgene derivatives, and compound products, such as vinyl compounds and compound additives and plasticizers. The Company’s building products segment consists of over two primary product groups: window and door profiles and trim, moldings and deck products, and outdoor building products, which includes siding and exterior accessories, pipe and pipe fittings.

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