Trecora Resources (NYSE: TREC) and Verenium Corp (NASDAQ:VRNM) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares Trecora Resources and Verenium Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Trecora Resources $212.40 million 1.40 $19.42 million $0.13 93.85
Verenium Corp N/A N/A N/A ($1.56) -2.56

Trecora Resources has higher revenue and earnings than Verenium Corp. Verenium Corp 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 & Institutional Ownership

41.4% of Trecora Resources shares are held by institutional investors. 6.6% of Trecora Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Trecora Resources and Verenium Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trecora Resources 1.37% 3.74% 2.09%
Verenium Corp N/A N/A N/A

Risk & Volatility

Trecora Resources has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Verenium Corp has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Trecora Resources and Verenium Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trecora Resources 0 0 3 0 3.00
Verenium Corp 0 0 0 0 N/A

Trecora Resources presently has a consensus price target of $15.33, suggesting a potential upside of 25.68%. Given Trecora Resources’ higher probable upside, research analysts plainly believe Trecora Resources is more favorable than Verenium Corp.

Summary

Trecora Resources beats Verenium Corp on 10 of the 10 factors compared between the two stocks.

Trecora Resources Company Profile

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.

Verenium Corp Company Profile

Verenium Corporation (Verenium) is an industrial biotechnology company. The Company develops and commercializes enzymes for use in a range of industrial processes. It manufactures and markets its enzyme products in the fields of animal health and nutrition, grain processing, oilfield services and other industrial processes, such as pulp and paper and textiles. As of December 31, 2012, it marketed commercial enzyme products, either independently or in collaboration with its partners. In addition, it has developed a pipeline of enzyme product candidates. Its products are organized into four product lines: animal health and nutrition, grain processing, oilfield services and other industrial processes. As of December 31, 2012, it markets nine commercial enzyme products. In October 2013, BASF SE acquired 71% stake in the Company.

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