Methanex (NASDAQ: MEOH) and Chemours (NYSE:CC) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Insider and Institutional Ownership
83.1% of Methanex shares are held by institutional investors. Comparatively, 74.4% of Chemours shares are held by institutional investors. 1.0% of Methanex shares are held by company insiders. Comparatively, 1.1% of Chemours shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Methanex and Chemours’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Methanex pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Chemours pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Methanex pays out 39.9% of its earnings in the form of a dividend. Chemours pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Methanex has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Chemours has a beta of 3.38, indicating that its stock price is 238% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Methanex and Chemours, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Methanex presently has a consensus price target of $56.31, suggesting a potential upside of 7.05%. Chemours has a consensus price target of $57.86, suggesting a potential upside of 21.22%. Given Chemours’ stronger consensus rating and higher possible upside, analysts clearly believe Chemours is more favorable than Methanex.
Valuation and Earnings
This table compares Methanex and Chemours’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Methanex||$2.00 billion||2.21||-$12.54 million||$3.01||17.48|
|Chemours||$5.40 billion||1.64||$7.00 million||$1.45||32.92|
Chemours has higher revenue and earnings than Methanex. Methanex is trading at a lower price-to-earnings ratio than Chemours, indicating that it is currently the more affordable of the two stocks.
Chemours beats Methanex on 10 of the 16 factors compared between the two stocks.
Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
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