Contrasting Tronox (TROX) and The Competition

Tronox (NYSE:TROX) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it compare to its peers? We will compare Tronox to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Tronox and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tronox	$2.90 billion	-$470.00 million	-0.78
Tronox Competitors	$6.40 billion	$222.31 million	6.86

Tronox’s peers have higher revenue and earnings than Tronox. Tronox is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Tronox has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Tronox’s peers have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Profitability

This table compares Tronox and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tronox	-15.86%	-24.24%	-5.27%
Tronox Competitors	-59.14%	-0.41%	-1.37%

Dividends

Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 8.0%. Tronox pays out -6.3% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.9% of their earnings in the form of a dividend. Tronox is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for Tronox and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	5	3	1	0	1.56
Tronox Competitors	3248	12210	14131	519	2.40

Tronox currently has a consensus price target of $5.33, suggesting a potential upside of 114.62%. As a group, “Chemicals” companies have a potential upside of 8.88%. Given Tronox’s higher possible upside, research analysts plainly believe Tronox is more favorable than its peers.

Insider and Institutional Ownership

73.4% of Tronox shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 2.0% of Tronox shares are held by company insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Tronox peers beat Tronox on 9 of the 15 factors compared.

Tronox Company Profile

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.