Critical Analysis: Orion (NYSE:OEC) versus Croda International (OTCMKTS:COIHY)

Orion (NYSE:OEC) and Croda International (OTCMKTS:COIHY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Insider & Institutional Ownership

94.3% of Orion shares are held by institutional investors. Comparatively, 0.1% of Croda International shares are held by institutional investors. 2.7% of Orion shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Orion and Croda International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion	3	2	0	0	1.40
Croda International	2	1	0	2	2.40

Orion presently has a consensus price target of $5.67, suggesting a potential downside of 7.41%. Given Orion’s higher possible upside, research analysts plainly believe Orion is more favorable than Croda International.

Dividends

Orion pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Croda International pays an annual dividend of $0.51 per share and has a dividend yield of 2.7%. Orion pays out -13.8% of its earnings in the form of a dividend.

Risk & Volatility

Orion has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Croda International has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Orion and Croda International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion	$1.83 billion	0.19	$44.20 million	($0.58)	-10.55
Croda International	$2.08 billion	2.53	$202.55 million	N/A	N/A

Croda International has higher revenue and earnings than Orion.

Profitability

This table compares Orion and Croda International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion	-1.74%	14.90%	3.45%
Croda International	N/A	N/A	N/A

Summary

Croda International beats Orion on 8 of the 14 factors compared between the two stocks.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.