Huntsman Corporation (NYSE: HUN) and OM Group (NYSE:OMG) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Huntsman Corporation and OM Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntsman Corporation 0 1 8 0 2.89
OM Group 0 0 0 0 N/A

Huntsman Corporation presently has a consensus target price of $31.33, indicating a potential upside of 2.56%.

Earnings & Valuation

This table compares Huntsman Corporation and OM Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Huntsman Corporation $9.66 billion 0.76 $326.00 million $2.13 14.34
OM Group N/A N/A N/A ($6.13) N/A

Huntsman Corporation has higher revenue and earnings than OM Group. OM Group is trading at a lower price-to-earnings ratio than Huntsman Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.4% of Huntsman Corporation shares are owned by institutional investors. 19.0% of Huntsman Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. OM Group does not pay a dividend. Huntsman Corporation pays out 23.5% of its earnings in the form of a dividend.

Profitability

This table compares Huntsman Corporation and OM Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntsman Corporation 5.37% 30.64% 6.06%
OM Group 3.68% 4.22% 2.58%

Summary

Huntsman Corporation beats OM Group on 9 of the 10 factors compared between the two stocks.

About Huntsman Corporation

Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.

About OM Group

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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