Analyzing OCI Partners (OCIP) and Basf (BASFY)

OCI Partners (NYSE: OCIP) and Basf (OTCMKTS:BASFY) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

OCI Partners has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Basf has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares OCI Partners and Basf’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OCI Partners 11.37% 30.77% 6.89%
Basf 9.42% 17.83% 7.86%

Institutional & Insider Ownership

8.3% of OCI Partners shares are held by institutional investors. Comparatively, 0.5% of Basf shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares OCI Partners and Basf’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OCI Partners $343.33 million 2.91 $24.47 million N/A N/A
Basf $72.83 billion 1.23 $6.87 billion $1.82 13.37

Basf has higher revenue and earnings than OCI Partners.

Dividends

OCI Partners pays an annual dividend of $1.52 per share and has a dividend yield of 13.3%. Basf pays an annual dividend of $0.66 per share and has a dividend yield of 2.7%. Basf pays out 36.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for OCI Partners and Basf, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 0 1 1 0 2.50
Basf 0 4 2 0 2.33

OCI Partners currently has a consensus target price of $11.00, suggesting a potential downside of 4.10%. Given OCI Partners’ stronger consensus rating and higher probable upside, equities analysts plainly believe OCI Partners is more favorable than Basf.

Summary

OCI Partners beats Basf on 10 of the 14 factors compared between the two stocks.

About OCI Partners

OCI Partners LP produces, markets, and distributes methanol and anhydrous ammonia in the United States. The company offers its products to industrial users and commercial traders for further processing or distribution. OCI GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Nederland, Texas. OCI Partners LP is a subsidiary of OCIP Holding, LLC.

About Basf

BASF SE operates as a chemical company worldwide. It operates through five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The Chemicals segment offers solvents, plasticizers, monomers, and glues, as well as raw materials for detergents, plastics, textile fibers, paints and coatings, crop protection products, and medicines. The Performance Products segment provides dispersions and pigments, care chemicals, nutrition and health products, and performance chemicals that are used in pharmaceuticals, personal care products, and cosmetics, as well as hygiene and household products; and other products for enhancing processes in the paper industry and water treatment, as well as in oil, gas, and ore extraction. The Functional Materials & Solutions segment offers catalysts, battery materials, engineering plastics, polyurethane systems, automotive coatings, surface treatment solutions, and concrete admixtures; and tile adhesives and decorative paints for the automotive, electrical, chemical, and construction industries, as well as for household, and sports and leisure applications. The Agricultural Solutions segment provides fungicides, herbicides, and insecticides, as well as functional crop care products. The Oil & Gas segment explores for and produces oil and gas in Europe, North Africa, Russia, South America, and the Middle East. It also produces ammonia; and transports natural gas in Europe. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.

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