Critical Review: Victrex (OTCMKTS:VTXPF) versus Onex (OTCMKTS:ONEXF)

Victrex (OTCMKTS:VTXPF) and Onex (OTCMKTS:ONEXF) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Victrex and Onex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victrex	0	0	1	0	3.00
Onex	0	0	1	0	3.00

Onex has a consensus price target of $96.00, suggesting a potential upside of 33.02%. Given Onex’s higher possible upside, analysts plainly believe Onex is more favorable than Victrex.

Volatility & Risk

Victrex has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Onex has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

0.8% of Victrex shares are owned by institutional investors. Comparatively, 0.7% of Onex shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Victrex and Onex’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victrex	$376.57 million	3.41	$75.71 million	N/A	N/A
Onex	$1.13 billion	4.97	$529.00 million	$6.80	10.61

Onex has higher revenue and earnings than Victrex.

Profitability

This table compares Victrex and Onex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victrex	N/A	N/A	N/A
Onex	46.98%	8.80%	5.78%

Summary

Onex beats Victrex on 8 of the 9 factors compared between the two stocks.

About Victrex

Victrex plc, through its subsidiaries, engages in the manufacture and sale of polymer solutions worldwide. The company operates through two segments, Sustainable Solutions and Medical. It develops PEEK and PAEK based polymer solutions, and semi-finished and finished parts. The company also provides specialist solutions for medical device manufacturers; sells thermoplastic polymers; sustainable solutions for energy and industrial, VAR, automotive, aerospace, and electronics markets; and engages in trading activities. It serves automotive, aerospace, energy and industrial, electronics, and medical markets. Victrex plc was incorporated in 1993 and is headquartered in Thornton-Cleveleys, the United Kingdom.

About Onex

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.