Ecolab (NYSE: ECL) and Bioamber (NYSE:BIOA) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Institutional & Insider Ownership
78.3% of Ecolab shares are owned by institutional investors. Comparatively, 28.7% of Bioamber shares are owned by institutional investors. 1.5% of Ecolab shares are owned by insiders. Comparatively, 8.3% of Bioamber shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Ecolab and Bioamber’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ecolab||$13.84 billion||2.86||$1.51 billion||$4.59||29.80|
|Bioamber||$8.27 million||0.31||-$22.47 million||($0.70)||-0.07|
Ecolab has higher revenue and earnings than Bioamber. Bioamber is trading at a lower price-to-earnings ratio than Ecolab, indicating that it is currently the more affordable of the two stocks.
This table compares Ecolab and Bioamber’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ecolab pays an annual dividend of $1.64 per share and has a dividend yield of 1.2%. Bioamber does not pay a dividend. Ecolab pays out 35.7% of its earnings in the form of a dividend. Ecolab has raised its dividend for 32 consecutive years.
This is a summary of current ratings and price targets for Ecolab and Bioamber, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ecolab presently has a consensus price target of $139.47, indicating a potential upside of 1.96%. Bioamber has a consensus price target of $6.50, indicating a potential upside of 13,165.31%. Given Bioamber’s stronger consensus rating and higher probable upside, analysts clearly believe Bioamber is more favorable than Ecolab.
Risk & Volatility
Ecolab has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Bioamber has a beta of 3.29, meaning that its share price is 229% more volatile than the S&P 500.
Ecolab beats Bioamber on 12 of the 17 factors compared between the two stocks.
Ecolab Company Profile
Ecolab Inc. provides water, hygiene and energy technologies and services. The Company’s cleaning and sanitizing programs and products, pest elimination services and equipment maintenance and repair services support customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care and commercial facilities management sectors in over 170 countries. Its segments include Global Industrial, Global Institutional, Global Energy, Other and Corporate. Its Global Industrial segment consists of the Water, Food and Beverage, Paper and Textile Care operating units. Its Global Institutional segment consists of the Institutional, Specialty and Healthcare operating units. The Global Energy segment provides on-site and technology-driven solutions to the global drilling, oil and gas production, refining, and petrochemical industries. The Company’s Other segment consists of the Pest Elimination operating units.
Bioamber Company Profile
BioAmber Inc. (BioAmber), formerly DNP Green Technology, Inc., is an industrial biotechnology company, which produces sustainable chemicals. The Company’s technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstocks into sustainable chemicals that are replacements for petroleum-derived chemicals, which are used in a range of everyday products, including plastics, food additives and personal care products. Its geographical segments include Europe and North America. Its product pipeline includes the derivatives of bio-succinic acid, such as 1,4 Butanediol (1,4 BDO) and tetrahydrofuran (THF), and succinic acid-based polyesters, and C6 building block chemicals, such as adipic acid, caprolactam and hexamethylenediamine (HMDA). Its products are used in various applications, including polyurethanes, resins and coatings, de-icing and coolant solutions, fine chemicals, lubricants, carpets, engineering plastics and artificial leather products.
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