Financial Analysis: Kronos Worldwide (KRO) & Its Rivals
Kronos Worldwide (NYSE: KRO) is one of 52 publicly-traded companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Kronos Worldwide to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.
Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Kronos Worldwide pays out 24.9% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.3% of their earnings in the form of a dividend. Kronos Worldwide is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This table compares Kronos Worldwide and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kronos Worldwide Competitors||-2.31%||9.09%||4.11%|
This is a summary of current recommendations for Kronos Worldwide and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kronos Worldwide Competitors||255||1208||1324||33||2.40|
Kronos Worldwide currently has a consensus target price of $17.00, suggesting a potential downside of 24.28%. As a group, “Specialty Chemicals” companies have a potential downside of 2.81%. Given Kronos Worldwide’s peers stronger consensus rating and higher possible upside, analysts plainly believe Kronos Worldwide has less favorable growth aspects than its peers.
Volatility and Risk
Kronos Worldwide has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Kronos Worldwide’s peers have a beta of 1.58, suggesting that their average stock price is 58% more volatile than the S&P 500.
Institutional and Insider Ownership
15.4% of Kronos Worldwide shares are held by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are held by institutional investors. 0.1% of Kronos Worldwide shares are held by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Kronos Worldwide and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Kronos Worldwide||$1.50 billion||$240.60 million||9.32|
|Kronos Worldwide Competitors||$1.95 billion||$301.80 million||16.85|
Kronos Worldwide’s peers have higher revenue and earnings than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Kronos Worldwide peers beat Kronos Worldwide on 8 of the 15 factors compared.
Kronos Worldwide Company Profile
Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.
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