Innophos (NASDAQ: IPHS) and Axiall (NYSE:AXLL) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
This table compares Innophos and Axiall’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Innophos and Axiall, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
94.5% of Innophos shares are owned by institutional investors. 2.3% of Innophos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Innophos pays an annual dividend of $1.92 per share and has a dividend yield of 4.2%. Axiall pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Innophos pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Axiall pays out -5.0% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Innophos and Axiall’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Innophos||$725.34 million||1.24||$47.97 million||$2.17||21.26|
Innophos has higher revenue and earnings than Axiall. Axiall is trading at a lower price-to-earnings ratio than Innophos, indicating that it is currently the more affordable of the two stocks.
Innophos beats Axiall on 10 of the 11 factors compared between the two stocks.
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.
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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