Head to Head Review: Trecora Resources (TREC) vs. Praxair (PX)
Trecora Resources (NYSE: TREC) and Praxair (NYSE:PX) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
Trecora Resources has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Praxair has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
This table compares Trecora Resources and Praxair’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Trecora Resources and Praxair’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Trecora Resources||$229.00 million||1.31||$26.34 million||$0.09||136.68|
|Praxair||$10.92 billion||3.75||$3.54 billion||$5.35||26.76|
Praxair has higher revenue and earnings than Trecora Resources. Praxair is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
41.6% of Trecora Resources shares are held by institutional investors. Comparatively, 85.3% of Praxair shares are held by institutional investors. 6.6% of Trecora Resources shares are held by company insiders. Comparatively, 0.2% of Praxair shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Praxair pays an annual dividend of $3.15 per share and has a dividend yield of 2.2%. Trecora Resources does not pay a dividend. Praxair pays out 58.9% of its earnings in the form of a dividend. Praxair has increased its dividend for 12 consecutive years.
This is a breakdown of current recommendations and price targets for Trecora Resources and Praxair, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trecora Resources currently has a consensus target price of $15.67, indicating a potential upside of 27.37%. Praxair has a consensus target price of $136.89, indicating a potential downside of 4.37%. Given Trecora Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe Trecora Resources is more favorable than Praxair.
Praxair beats Trecora Resources on 11 of the 17 factors compared between the two stocks.
About Trecora Resources
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
Praxair, Inc. is an industrial gas company. The Company’s operations are organized into five segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, it operates its surface technologies business through its subsidiary, Praxair Surface Technologies, Inc., which represents the fifth segment. Its operations consist of two product lines: industrial gases and surface technologies. Its industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases). It also designs, engineers and builds equipment that produces industrial gases primarily for internal use. Its Surface Technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.
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