OMNOVA Solutions (NYSE: OMN) and Cytec Industries (NYSE:CYT) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares OMNOVA Solutions and Cytec Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OMNOVA Solutions -1.19% 18.52% 2.97%
Cytec Industries 11.96% 18.60% 8.55%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for OMNOVA Solutions and Cytec Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OMNOVA Solutions 0 1 2 0 2.67
Cytec Industries 0 0 0 0 N/A

OMNOVA Solutions presently has a consensus price target of $12.00, suggesting a potential upside of 37.93%. Given OMNOVA Solutions’ higher possible upside, equities analysts clearly believe OMNOVA Solutions is more favorable than Cytec Industries.

Valuation & Earnings

This table compares OMNOVA Solutions and Cytec Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OMNOVA Solutions $778.50 million 0.50 $82.20 million ($0.21) -41.43
Cytec Industries N/A N/A N/A N/A N/A

OMNOVA Solutions has higher revenue and earnings than Cytec Industries.

Insider and Institutional Ownership

88.0% of OMNOVA Solutions shares are owned by institutional investors. 4.8% of OMNOVA Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

OMNOVA Solutions beats Cytec Industries on 5 of the 9 factors compared between the two stocks.

OMNOVA Solutions Company Profile

OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.

Cytec Industries Company Profile

Cytec Industries Inc. is a global specialty materials and chemicals company focused on developing, manufacturing and selling value-added products. The Company offers aerospace and industrial materials, mining and plastics industries. The Company operates through four segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials, which serve automotive, motorsports, recreation, tooling, and other structural materials markets and process materials, which serves aerospace, wind energy, and other process materials markets. The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives, and formulated resins. The Company operates as a wholly owned subsidiary of Solvay.

Receive News & Stock Ratings for OMNOVA Solutions Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OMNOVA Solutions Inc. and related stocks with our FREE daily email newsletter.