Sensient Technologies Corporation (SXT) versus OM Group (OMG) Critical Analysis
Sensient Technologies Corporation (NYSE: SXT) and OM Group (NYSE:OMG) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Valuation & Earnings
This table compares Sensient Technologies Corporation and OM Group’s gross 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 OM Group.
This table compares Sensient Technologies Corporation and OM Group’s 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%|
This is a breakdown of current recommendations and price targets for Sensient Technologies Corporation and OM Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sensient Technologies Corporation||0||0||1||0||3.00|
Sensient Technologies Corporation presently has a consensus price target of $90.00, indicating a potential upside of 20.27%. Given Sensient Technologies Corporation’s higher possible upside, equities analysts clearly believe Sensient Technologies Corporation is more favorable than OM Group.
Insider & Institutional Ownership
89.0% 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 stock will outperform the market over the long term.
Sensient Technologies Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. OM Group does not pay a dividend. Sensient Technologies Corporation pays out 48.4% of its earnings in the form of a dividend. OM Group has raised its dividend for 5 consecutive years.
Sensient Technologies Corporation beats OM Group on 9 of the 11 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.
OM Group Company Profile
OM Group, Inc. is a United States-based industrial company. The Company is engaged in serving global markets, including automotive systems, electronic devices, aerospace and defense, industrial and medical. It operates in three business segments: Magnetic Technologies, Battery Technologies and Specialty Chemicals. Its Magnetic Technologies segment develops, manufactures and distributes industrial-use magnetic materials and related products to an array of end markets, including automotive systems, electrical installation technology, industrial, retail and renewable energy. The Company’s Battery Technologies segment provides batteries, battery management systems, and energetic devices for defense, space and medical markets. The Company’s Specialty Chemicals segment develops, produces and supplies chemicals for electronic applications, industrial applications including coatings, composites and tire, and photomasks used by customers to produce semiconductors and related products.
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