Cabot Corporation (NYSE: CBT) is one of 52 publicly-traded companies in the “Specialty Chemicals” industry, but how does it compare to its competitors? We will compare Cabot Corporation to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cabot Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Corporation 0 2 4 0 2.67
Cabot Corporation Competitors 160 1004 1259 24 2.47

Cabot Corporation presently has a consensus target price of $60.33, suggesting a potential upside of 5.18%. As a group, “Specialty Chemicals” companies have a potential downside of 2.72%. Given Cabot Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cabot Corporation is more favorable than its competitors.

Institutional & Insider Ownership

84.3% of Cabot Corporation shares are held by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are held by institutional investors. 2.5% of Cabot Corporation 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Cabot Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cabot Corporation $2.61 billion $488.00 million 16.07
Cabot Corporation Competitors $1.96 billion $301.95 million 16.17

Cabot Corporation has higher revenue and earnings than its competitors. Cabot Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Cabot Corporation has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Cabot Corporation’s competitors have a beta of 1.59, meaning that their average share price is 59% more volatile than the S&P 500.

Dividends

Cabot Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.2%. Cabot Corporation pays out 35.3% 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. Cabot Corporation has raised its dividend for 5 consecutive years.

Profitability

This table compares Cabot Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Corporation 8.61% 16.03% 7.24%
Cabot Corporation Competitors -2.47% 8.99% 4.06%

Summary

Cabot Corporation beats its competitors on 11 of the 15 factors compared.

About Cabot Corporation

Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through four business segments: reinforcement materials, performance chemicals, purification solutions and specialty fluids. Reinforcement materials’ rubber grade carbon blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Its rubber blacks products are used in tires and industrial products. Performance Chemicals consists of two businesses: specialty carbons and formulations business, and metal oxides business. Purification Solutions’ activated carbon products are used for the purification of water, air and pharmaceuticals, among others, as either a colorant or a decolorizing agent in the production of food and beverage applications. Its specialty fluids segment produces and markets cesium formate as a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction.

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