Financial Analysis: Innophos (IPHS) & Braskem (BAK)
Innophos (NASDAQ: IPHS) and Braskem (NYSE:BAK) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares Innophos and Braskem’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Innophos||$725.34 million||1.26||$47.97 million||$2.18||21.52|
|Braskem||$13.74 billion||0.87||-$117.96 million||$0.90||33.41|
Insider and Institutional Ownership
94.5% of Innophos shares are owned by institutional investors. Comparatively, 0.6% of Braskem shares are owned by institutional investors. 2.3% of Innophos shares are owned by insiders. Comparatively, 0.0% of Braskem shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Innophos and Braskem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Innophos pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Braskem pays an annual dividend of $0.75 per share and has a dividend yield of 2.5%. Innophos pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Braskem pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Innophos has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Braskem has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
This is a breakdown of recent ratings for Innophos and Braskem, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Innophos beats Braskem on 8 of the 14 factors compared between the two stocks.
Innophos Company Profile
Innophos Holdings, Inc. is a producer of nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. The Company also provides bioactive mineral and nutritional ingredients. The Company’s segments include Specialty Phosphates US & Canada, Specialty Phosphates Mexico, and Granular Triple Super Phosphate (GTSP) & Other. The Company has four principal product lines: Specialty Ingredients; Food and Technical Grade Purified Phosphoric Acid (PPA); Technical Grade Sodium Tripolyphosphate (STPP), & Detergent Grade PPA, and GTSP & Other. The Company’s bioactive mineral ingredients are mineral-based ingredients for food, beverage and dietary supplement end markets that are manufactured to be readily digestible. The Company has its manufacturing facilities located throughout the United States, Canada, Mexico and China.
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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