Cabot (CBT) and Bioamber (BIOA) Critical Survey
Cabot (NYSE: CBT) and Bioamber (NYSE:BIOA) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
This table compares Cabot and Bioamber’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Cabot and Bioamber’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cabot||$2.72 billion||1.54||$241.00 million||$3.81||17.74|
|Bioamber||$8.27 million||2.71||-$22.47 million||($0.75)||-0.57|
Cabot has higher revenue and earnings than Bioamber. Bioamber is trading at a lower price-to-earnings ratio than Cabot, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.8% of Cabot shares are held by institutional investors. Comparatively, 30.0% of Bioamber shares are held by institutional investors. 2.5% of Cabot shares are held by company insiders. Comparatively, 8.3% of Bioamber shares are held 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.
Risk & Volatility
Cabot has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Bioamber has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Cabot and Bioamber, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabot currently has a consensus price target of $69.80, suggesting a potential upside of 3.28%. Bioamber has a consensus price target of $6.50, suggesting a potential upside of 1,411.63%. Given Bioamber’s higher probable upside, analysts clearly believe Bioamber is more favorable than Cabot.
Cabot pays an annual dividend of $1.26 per share and has a dividend yield of 1.9%. Bioamber does not pay a dividend. Cabot pays out 33.1% of its earnings in the form of a dividend. Cabot has increased its dividend for 6 consecutive years.
Cabot beats Bioamber on 12 of the 17 factors compared between the two stocks.
Cabot Company Profile
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.
Bioamber Company Profile
BioAmber Inc. (BioAmber), formerly DNP Green Technology, Inc., is an industrial biotechnology company, which produces sustainable chemicals. The Company’s technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstocks into sustainable chemicals that are replacements for petroleum-derived chemicals, which are used in a range of everyday products, including plastics, food additives and personal care products. Its geographical segments include Europe and North America. Its product pipeline includes the derivatives of bio-succinic acid, such as 1,4 Butanediol (1,4 BDO) and tetrahydrofuran (THF), and succinic acid-based polyesters, and C6 building block chemicals, such as adipic acid, caprolactam and hexamethylenediamine (HMDA). Its products are used in various applications, including polyurethanes, resins and coatings, de-icing and coolant solutions, fine chemicals, lubricants, carpets, engineering plastics and artificial leather products.
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