Olin Corporation (NYSE: OLN) and Celanese Corporation (NYSE:CE) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Valuation & Earnings
This table compares Olin Corporation and Celanese Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Olin Corporation||$5.93 billion||0.82||$842.90 million||$0.25||116.72|
|Celanese Corporation||$5.62 billion||2.37||$1.16 billion||$5.89||16.42|
Celanese Corporation has higher revenue, but lower earnings than Olin Corporation. Celanese Corporation is trading at a lower price-to-earnings ratio than Olin Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Olin Corporation has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Celanese Corporation has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Olin Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Celanese Corporation pays an annual dividend of $1.84 per share and has a dividend yield of 1.9%. Olin Corporation pays out 320.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Celanese Corporation pays out 31.2% of its earnings in the form of a dividend. Celanese Corporation has increased its dividend for 5 consecutive years.
This table compares Olin Corporation and Celanese Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Olin Corporation and Celanese Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Olin Corporation currently has a consensus price target of $32.67, indicating a potential upside of 11.95%. Celanese Corporation has a consensus price target of $99.54, indicating a potential upside of 2.92%. Given Olin Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Olin Corporation is more favorable than Celanese Corporation.
Insider & Institutional Ownership
92.9% of Olin Corporation shares are owned by institutional investors. 2.9% of Olin Corporation shares are owned by company insiders. Comparatively, 0.4% of Celanese Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Celanese Corporation beats Olin Corporation on 10 of the 18 factors compared between the two stocks.
Olin Corporation Company Profile
Olin Corporation is a manufacturer and distributor of chemical products, and ammunition. The Company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products, such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
Celanese Corporation Company Profile
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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