PQ Group (PQG) vs. Celanese (CE) Financial Survey

PQ Group (NYSE: PQG) and Celanese (NYSE:CE) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for PQ Group and Celanese, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PQ Group 0 3 7 0 2.70
Celanese 1 5 10 1 2.65

PQ Group currently has a consensus price target of $19.75, suggesting a potential upside of 36.77%. Celanese has a consensus price target of $113.21, suggesting a potential upside of 12.98%. Given PQ Group’s stronger consensus rating and higher probable upside, research analysts clearly believe PQ Group is more favorable than Celanese.

Earnings and Valuation

This table compares PQ Group and Celanese’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PQ Group $1.06 billion 1.84 -$79.74 million $0.02 722.00
Celanese $6.14 billion 2.21 $843.00 million $6.10 16.43

Celanese has higher revenue and earnings than PQ Group. Celanese is trading at a lower price-to-earnings ratio than PQ Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.3% of PQ Group shares are owned by institutional investors. Comparatively, 95.9% of Celanese shares are owned by institutional investors. 0.4% of Celanese shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Celanese pays an annual dividend of $1.84 per share and has a dividend yield of 1.8%. PQ Group does not pay a dividend. Celanese pays out 30.2% of its earnings in the form of a dividend. Celanese has increased its dividend for 6 consecutive years.

Profitability

This table compares PQ Group and Celanese’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PQ Group N/A N/A N/A
Celanese 13.73% 33.49% 11.87%

Summary

Celanese beats PQ Group on 13 of the 17 factors compared between the two stocks.

About PQ Group

PQ Group Holdings Inc is a global provider of catalysts, specialty materials, chemicals and services that enable environmental improvements. The Company’s products and solutions help companies produce vehicles with fuel efficiency. The Company has developed zeolite-based catalysts to reduce pollutants in diesel engines. The Company’s segments include environmental catalysts and services, and performance materials and chemicals. Environmental catalysts and services segment has three product groups, including silica catalysts, zeolite catalysts, and refining services. Silica catalysts product group sells both the finished catalyst and catalysts supports, for the production of high-density polyethylene (HDPE).zeolite catalysts product group is a supplier of emissions control catalysts as well as a supplier of specialty catalysts, precursors, and formulations. Performance materials and chemicals segment has two product groups, including performance materials and performance chemicals.

About Celanese

Celanese Corporation (Celanese) is a technology and specialty materials company. The Company’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, Acetyl Intermediates and Other Activities. The Advanced Engineered Materials segment includes the Company’s engineered materials business and certain affiliates. The Consumer Specialties segment includes the Company’s cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. The Industrial Specialties segment includes the Company’s emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses. The Acetyl Intermediates segment includes the Company’s intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. The Company has operations in North America, Europe and Asia. As of December 31, 2016, the Company had 30 global production facilities.

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