Orion Engineered Carbons S.A (NYSE: OEC) and Sigma-Aldrich (NASDAQ:SIAL) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Orion Engineered Carbons S.A and Sigma-Aldrich, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Engineered Carbons S.A 0 1 4 0 2.80
Sigma-Aldrich 0 0 0 0 N/A

Orion Engineered Carbons S.A presently has a consensus target price of $25.40, indicating a potential upside of 12.39%.

Institutional and Insider Ownership

54.6% of Orion Engineered Carbons S.A shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Orion Engineered Carbons S.A and Sigma-Aldrich’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orion Engineered Carbons S.A $1.14 billion 1.17 $49.38 million $1.25 18.08
Sigma-Aldrich N/A N/A N/A $4.08 N/A

Orion Engineered Carbons S.A has higher revenue and earnings than Sigma-Aldrich. Sigma-Aldrich is trading at a lower price-to-earnings ratio than Orion Engineered Carbons S.A, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orion Engineered Carbons S.A and Sigma-Aldrich’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Engineered Carbons S.A 5.50% 137.36% 8.91%
Sigma-Aldrich 16.22% 13.72% 10.47%

Dividends

Orion Engineered Carbons S.A pays an annual dividend of $0.81 per share and has a dividend yield of 3.6%. Sigma-Aldrich does not pay a dividend. Orion Engineered Carbons S.A pays out 64.8% of its earnings in the form of a dividend.

Summary

Orion Engineered Carbons S.A beats Sigma-Aldrich on 5 of the 9 factors compared between the two stocks.

Orion Engineered Carbons S.A Company Profile

Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.

Sigma-Aldrich Company Profile

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

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