Braskem (NYSE: BAK) is one of 33 public companies in the “Commodity Chemicals” industry, but how does it compare to its rivals? We will compare Braskem to related businesses based on the strength of its earnings, dividends, profitability, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

0.6% of Braskem shares are owned by institutional investors. Comparatively, 70.9% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Comparatively, 7.8% of shares of all “Commodity Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Braskem has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Braskem’s rivals have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares Braskem and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Braskem $13.74 billion -$117.96 million 30.25
Braskem Competitors $4.01 billion $340.26 million 142.92

Braskem has higher revenue, but lower earnings than its rivals. Braskem is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Braskem and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braskem 3.07% 28.41% 2.59%
Braskem Competitors -29.52% 24.16% 5.51%

Dividends

Braskem pays an annual dividend of $0.75 per share and has a dividend yield of 2.8%. Braskem pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.9% and pay out 48.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Braskem and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braskem 0 0 1 0 3.00
Braskem Competitors 108 840 1237 36 2.54

As a group, “Commodity Chemicals” companies have a potential downside of 2.99%. Given Braskem’s rivals higher possible upside, analysts clearly believe Braskem has less favorable growth aspects than its rivals.

Summary

Braskem rivals beat Braskem on 8 of the 15 factors compared.

Braskem Company Profile

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.

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