Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) and Kronos Worldwide (NYSE:KRO – Get Free Report) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Earnings & Valuation
This table compares Oil-Dri Corporation Of America and Kronos Worldwide”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oil-Dri Corporation Of America | $485.57 million | 1.67 | $54.00 million | $3.70 | 15.01 |
| Kronos Worldwide | $1.86 billion | 0.27 | $86.20 million | ($0.36) | -12.25 |
Dividends
Oil-Dri Corporation Of America pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Kronos Worldwide pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Oil-Dri Corporation Of America pays out 19.5% of its earnings in the form of a dividend. Kronos Worldwide pays out -55.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years. Kronos Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Oil-Dri Corporation Of America and Kronos Worldwide, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
| Kronos Worldwide | 3 | 1 | 0 | 0 | 1.25 |
Kronos Worldwide has a consensus target price of $6.50, suggesting a potential upside of 47.39%. Given Kronos Worldwide’s higher possible upside, analysts clearly believe Kronos Worldwide is more favorable than Oil-Dri Corporation Of America.
Volatility & Risk
Oil-Dri Corporation Of America has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Insider and Institutional Ownership
49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. Comparatively, 15.1% of Kronos Worldwide shares are held by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are held by company insiders. Comparatively, 0.1% of Kronos Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Oil-Dri Corporation Of America and Kronos Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oil-Dri Corporation Of America | 11.12% | 22.36% | 14.74% |
| Kronos Worldwide | 3.57% | 8.04% | 3.50% |
Summary
Oil-Dri Corporation Of America beats Kronos Worldwide on 11 of the 17 factors compared between the two stocks.
About Oil-Dri Corporation Of America
Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
About Kronos Worldwide
Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.
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