Methanex Corporation (NASDAQ: MEOH) and Calgon Carbon Corporation (NYSE:CCC) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Methanex Corporation and Calgon Carbon Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Methanex Corporation 1 4 8 0 2.54
Calgon Carbon Corporation 0 2 2 0 2.50

Methanex Corporation presently has a consensus price target of $58.31, indicating a potential upside of 21.73%. Calgon Carbon Corporation has a consensus price target of $17.75, indicating a potential upside of 44.31%. Given Calgon Carbon Corporation’s higher possible upside, analysts plainly believe Calgon Carbon Corporation is more favorable than Methanex Corporation.

Institutional and Insider Ownership

81.9% of Methanex Corporation shares are held by institutional investors. Comparatively, 85.2% of Calgon Carbon Corporation shares are held by institutional investors. 1.0% of Methanex Corporation shares are held by insiders. Comparatively, 2.3% of Calgon Carbon Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Methanex Corporation and Calgon Carbon Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Methanex Corporation $2.58 billion 1.60 $572.88 million $2.51 19.08
Calgon Carbon Corporation $557.15 million 1.12 $80.63 million $0.15 82.00

Methanex Corporation has higher revenue and earnings than Calgon Carbon Corporation. Methanex Corporation is trading at a lower price-to-earnings ratio than Calgon Carbon Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Methanex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Calgon Carbon Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Methanex Corporation pays out 47.8% of its earnings in the form of a dividend. Calgon Carbon Corporation pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Methanex Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Methanex Corporation has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Calgon Carbon Corporation has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Methanex Corporation and Calgon Carbon Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Methanex Corporation 8.92% 12.43% 4.96%
Calgon Carbon Corporation 1.27% 5.46% 2.81%

Summary

Methanex Corporation beats Calgon Carbon Corporation on 12 of the 16 factors compared between the two stocks.

Methanex Corporation Company Profile

Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

Calgon Carbon Corporation Company Profile

Calgon Carbon Corporation is a manufacturer of activated carbon, with capabilities in ultraviolet (UV) light disinfection. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates through four segments: Activated Carbon and Service, Equipment, Consumer and Other. The Company’s products and services are designed to protect human health and the environment from harmful contaminants in water, and air. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates in the United States, Europe, Japan, Africa, Canada, China, India, Latin America, and in other parts of Asia.

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