Platform Specialty Products (NYSE: PAH) and Orion Engineered Carbons (NYSE:OEC) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Institutional & Insider Ownership
92.2% of Platform Specialty Products shares are held by institutional investors. Comparatively, 85.6% of Orion Engineered Carbons shares are held by institutional investors. 5.2% of Platform Specialty Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Orion Engineered Carbons pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Platform Specialty Products does not pay a dividend. Orion Engineered Carbons pays out 66.1% of its earnings in the form of a dividend.
Risk and Volatility
Platform Specialty Products has a beta of 3.07, meaning that its share price is 207% more volatile than the S&P 500. Comparatively, Orion Engineered Carbons has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Platform Specialty Products and Orion Engineered Carbons, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platform Specialty Products||0||2||3||0||2.60|
|Orion Engineered Carbons||0||1||6||0||2.86|
Platform Specialty Products presently has a consensus price target of $14.20, indicating a potential upside of 28.86%. Orion Engineered Carbons has a consensus price target of $28.33, indicating a potential downside of 0.76%. Given Platform Specialty Products’ higher probable upside, research analysts plainly believe Platform Specialty Products is more favorable than Orion Engineered Carbons.
This table compares Platform Specialty Products and Orion Engineered Carbons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platform Specialty Products||-7.84%||7.69%||2.21%|
|Orion Engineered Carbons||5.69%||123.23%||9.03%|
Earnings & Valuation
This table compares Platform Specialty Products and Orion Engineered Carbons’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Platform Specialty Products||$3.78 billion||0.84||-$296.20 million||($1.04)||-10.60|
|Orion Engineered Carbons||$1.33 billion||1.28||$75.53 million||$1.21||23.60|
Orion Engineered Carbons has lower revenue, but higher earnings than Platform Specialty Products. Platform Specialty Products is trading at a lower price-to-earnings ratio than Orion Engineered Carbons, indicating that it is currently the more affordable of the two stocks.
Orion Engineered Carbons beats Platform Specialty Products on 10 of the 16 factors compared between the two stocks.
About Platform Specialty Products
Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers plating products that are used to plate holes; electroless nickel products, which are applied to various metal and plastic surfaces; electronic assembly materials for use in the electronic market and residential boiler systems; final finishes that are used on printed circuit boards; circuit formation products for surface preparation; oxides, which are used in the fabrication of multilayer circuit boards; semiconductor materials and packaging products; and pre-treatment and cleaning solutions. This segment also provides functional conversion coatings that are applied to metals to enhance corrosion resistance and paint adhesion; hard-coated films, which are used for the membrane switch in the touch screen markets; production and drilling fluids used in subsea control systems; solid sheet printing elements for use in flexographic printing and platemaking processes; liquid products to produce printing plates; and printing equipment. The Agricultural Solutions segment offers fungicides and biofungicides to prevent the spread of fungi and other diseases in crops; herbicides to control unwanted plants; insecticides, bioinsecticides, and acaricides; biostimulants and nutrition products; and seed treatment products, which are applied to seed before planting, as well as animal health products, such as honey bee protective miticides and veterinary vaccines. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in West Palm Beach, Florida.
About Orion Engineered Carbons
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
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