Critical Review: Sensient Technologies Corporation (SXT) & Cytec Industries (CYT)
Sensient Technologies Corporation (NYSE: SXT) and Cytec Industries (NYSE:CYT) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
This is a summary of recent ratings and recommmendations for Sensient Technologies Corporation and Cytec Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sensient Technologies Corporation||0||0||1||0||3.00|
Sensient Technologies Corporation currently has a consensus target price of $90.00, suggesting a potential upside of 20.27%. Given Sensient Technologies Corporation’s higher probable upside, research analysts plainly believe Sensient Technologies Corporation is more favorable than Cytec Industries.
Institutional and Insider Ownership
89.6% of Sensient Technologies Corporation shares are owned by institutional investors. 1.0% of Sensient Technologies Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Sensient Technologies Corporation and Cytec Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sensient Technologies Corporation||$1.36 billion||2.41||$247.07 million||$2.48||30.17|
Sensient Technologies Corporation has higher revenue and earnings than Cytec Industries.
Sensient Technologies Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. Cytec Industries does not pay a dividend. Sensient Technologies Corporation pays out 48.4% of its earnings in the form of a dividend. Sensient Technologies Corporation has increased its dividend for 5 consecutive years and Cytec Industries has increased its dividend for 3 consecutive years.
This table compares Sensient Technologies Corporation and Cytec Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sensient Technologies Corporation||8.16%||17.15%||8.75%|
Sensient Technologies Corporation beats Cytec Industries on 8 of the 12 factors compared between the two stocks.
Sensient Technologies Corporation Company Profile
Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.
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.
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