Critical Survey: Orion Engineered Carbons S.A (OEC) vs. Its Peers
Orion Engineered Carbons S.A (NYSE: OEC) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it compare to its competitors? We will compare Orion Engineered Carbons S.A to similar companies based on the strength of its earnings, profitability, risk, institutional ownership, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares Orion Engineered Carbons S.A and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Orion Engineered Carbons S.A||$1.37 billion||$269.86 million||27.12|
|Orion Engineered Carbons S.A Competitors||$1.96 billion||$301.93 million||16.32|
Orion Engineered Carbons S.A’s competitors have higher revenue and earnings than Orion Engineered Carbons S.A. Orion Engineered Carbons S.A is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
37.2% of Orion Engineered Carbons S.A shares are held by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are held by institutional investors. 7.1% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Orion Engineered Carbons S.A and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orion Engineered Carbons S.A||4.12%||148.13%||8.81%|
|Orion Engineered Carbons S.A Competitors||-2.47%||8.99%||4.06%|
This is a breakdown of recent recommendations for Orion Engineered Carbons S.A and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orion Engineered Carbons S.A||0||1||3||0||2.75|
|Orion Engineered Carbons S.A Competitors||259||1220||1339||34||2.40|
Orion Engineered Carbons S.A currently has a consensus price target of $23.50, indicating a potential upside of 1.95%. As a group, “Specialty Chemicals” companies have a potential downside of 3.38%. Given Orion Engineered Carbons S.A’s stronger consensus rating and higher possible upside, research analysts clearly believe Orion Engineered Carbons S.A is more favorable than its competitors.
Orion Engineered Carbons S.A pays an annual dividend of $0.81 per share and has a dividend yield of 3.5%. Orion Engineered Carbons S.A pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
Volatility and Risk
Orion Engineered Carbons S.A has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Orion Engineered Carbons S.A’s competitors have a beta of 1.59, suggesting that their average share price is 59% more volatile than the S&P 500.
Orion Engineered Carbons S.A beats its competitors on 8 of the 15 factors compared.
Orion Engineered Carbons S.A Company Profile
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
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