Braskem (NYSE: BAK) and CSW Industrials (NASDAQ:CSWI) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitabiliy.

Analyst Recommendations

This is a summary of current ratings and target prices for Braskem and CSW Industrials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braskem 0 0 2 0 3.00
CSW Industrials 0 0 1 0 3.00

Braskem currently has a consensus target price of $20.00, suggesting a potential downside of 11.82%. Given Braskem’s higher possible upside, equities analysts clearly believe Braskem is more favorable than CSW Industrials.

Earnings and Valuation

This table compares Braskem and CSW Industrials’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Braskem $14.64 billion N/A $2.75 billion $2.55 8.89
CSW Industrials $327.08 million 1.92 $55.19 million $0.70 56.50

Braskem has higher revenue and earnings than CSW Industrials. Braskem is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Braskem and CSW Industrials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braskem -1.12% -19.77% -1.36%
CSW Industrials 3.38% 9.95% 6.93%

Volatility & Risk

Braskem has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, CSW Industrials has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

1.0% of Braskem shares are owned by institutional investors. Comparatively, 66.1% of CSW Industrials shares are owned by institutional investors. 0.0% of Braskem shares are owned by insiders. Comparatively, 2.1% of CSW Industrials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Braskem pays an annual dividend of $0.77 per share and has a dividend yield of 3.4%. CSW Industrials does not pay a dividend. Braskem pays out 30.2% of its earnings in the form of a dividend.

Summary

CSW Industrials beats Braskem on 8 of the 14 factors compared between the two stocks.

About Braskem

Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.

About CSW Industrials

CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.

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