Analyzing A. Schulman (SHLM) and Its Competitors
A. Schulman (NASDAQ: SHLM) is one of 35 publicly-traded companies in the “Commodity Chemicals” industry, but how does it compare to its rivals? We will compare A. Schulman to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
84.2% of A. Schulman shares are held by institutional investors. Comparatively, 69.9% of shares of all “Commodity Chemicals” companies are held by institutional investors. 4.1% of A. Schulman shares are held by company insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares A. Schulman and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|A. Schulman||$2.42 billion||$207.01 million||-2.48|
|A. Schulman Competitors||$4.37 billion||$978.27 million||29.06|
A. Schulman’s rivals have higher revenue and earnings than A. Schulman. A. Schulman is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
A. Schulman has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, A. Schulman’s rivals have a beta of 1.16, meaning that their average share price is 16% more volatile than the S&P 500.
This is a summary of recent ratings for A. Schulman and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|A. Schulman Competitors||188||995||1266||55||2.47|
A. Schulman presently has a consensus target price of $35.00, suggesting a potential upside of 12.72%. As a group, “Commodity Chemicals” companies have a potential upside of 1.24%. Given A. Schulman’s stronger consensus rating and higher probable upside, research analysts plainly believe A. Schulman is more favorable than its rivals.
A. Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 2.6%. A. Schulman pays out -6.6% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 2.0% and pay out 55.0% of their earnings in the form of a dividend. A. Schulman is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares A. Schulman and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|A. Schulman Competitors||-27.79%||24.43%||5.42%|
A. Schulman beats its rivals on 8 of the 14 factors compared.
About A. Schulman
A. Schulman, Inc. is an international supplier of plastic formulations, resins and services, and provides solutions to its customers’ requirements through custom-formulated products. The Company’s customers span a range of markets, such as packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, and sports, home and leisure. The Company’s segments include Europe, Middle East and Africa (EMEA), the United States and Canada (USCAN), Latin America (LATAM), Asia Pacific (APAC) and Engineered Composites (EC). As of August 31, 2016, the Company operated in six product families, including custom performance colors (CPC), engineered composites, Masterbatch solutions, engineered plastics, specialty powders and distribution services. The CPC product family offers powdered, pelletized and liquid color concentrates that are custom-designed for thermoplastic resins.
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