Trecora Resources (NYSE: TREC) and Enzymotec (NASDAQ:ENZY) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
This table compares Trecora Resources and Enzymotec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Trecora Resources and Enzymotec, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trecora Resources currently has a consensus price target of $15.33, indicating a potential upside of 11.92%. Enzymotec has a consensus price target of $11.75, indicating a potential downside of 0.84%. Given Trecora Resources’ stronger consensus rating and higher possible upside, research analysts plainly believe Trecora Resources is more favorable than Enzymotec.
Volatility & Risk
Trecora Resources has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Enzymotec has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Institutional & Insider Ownership
42.7% of Trecora Resources shares are owned by institutional investors. Comparatively, 15.7% of Enzymotec shares are owned by institutional investors. 6.6% of Trecora Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Trecora Resources and Enzymotec’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Trecora Resources||$212.40 million||1.57||$19.42 million||$0.13||105.39|
|Enzymotec||$47.70 million||5.82||-$2.92 million||($0.27)||-43.89|
Trecora Resources has higher revenue and earnings than Enzymotec. Enzymotec is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Trecora Resources beats Enzymotec on 12 of the 14 factors compared between the two stocks.
Trecora Resources Company Profile
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
Enzymotec Company Profile
Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.
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