Comparing PTT Public (OTCMKTS:PCHUY) and Tronox (NYSE:TROX)

PTT Public (OTCMKTS:PCHUY) and Tronox (NYSE:TROX) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Earnings and Valuation

This table compares PTT Public and Tronox’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PTT Public	N/A	N/A	N/A	$30.38	0.20
Tronox	$3.05 billion	0.70	$497.00 million	($0.89)	-15.24

Tronox has higher revenue and earnings than PTT Public. Tronox is trading at a lower price-to-earnings ratio than PTT Public, indicating that it is currently the more affordable of the two stocks.

Dividends

PTT Public pays an annual dividend of $13.26 per share and has a dividend yield of 214.4%. Tronox pays an annual dividend of $0.50 per share and has a dividend yield of 3.7%. PTT Public pays out 43.7% of its earnings in the form of a dividend. Tronox pays out -56.2% 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. Tronox has raised its dividend for 3 consecutive years.

Profitability

This table compares PTT Public and Tronox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PTT Public	N/A	N/A	N/A
Tronox	-4.60%	5.60%	2.07%

Analyst Recommendations

This is a summary of current recommendations and price targets for PTT Public and Tronox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PTT Public	0	0	0	0	N/A
Tronox	0	4	3	0	2.43

Tronox has a consensus price target of $15.43, indicating a potential upside of 13.78%. Given Tronox’s higher probable upside, analysts clearly believe Tronox is more favorable than PTT Public.

Institutional and Insider Ownership

70.2% of Tronox shares are owned by institutional investors. 1.6% of Tronox shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Tronox beats PTT Public on 9 of the 13 factors compared between the two stocks.

About PTT Public

PTT Public Company Limited, together with its subsidiaries, operates as a petroleum and petrochemical company in Thailand, other Asian countries, Europe, the United States, and internationally. It operates through Upstream Petroleum and Natural Gas Business Group, Downstream Petroleum Business Group, and New Business and Infrastructure Group. The company is involved in the exploration and production of petroleum; and natural gas procurement, pipeline transmission, distribution, and separation activities. In addition, it engages in the exploration, production, and distribution of coal; and marketing of petroleum products and lube oil through an operating system of procurement, storage, and distribution of products, as well as the retail business at service stations. Further, the company imports and exports petroleum and petrochemical products, as well as other related products; produces and distributes electricity, steam, and water for industrial purpose; and offers project management, human resource support, petroleum related technology, consultant management, technical consultant for electricity businesses, petrol station and convenience store management, factory maintenance and engineering, oil and gas, safety and environmental, and business services, as well as services for the storage and handling of liquid chemicals. Additionally, it invests in liquefied natural gas business; produces and distributes chilled water/constructs and installs electricity generating systems; develops electricity power production projects; develops, markets, and distributes polymers products, by products, and other polymers-related products; develops real estate properties; operates vocational schools; and manufactures and distributes biochemical products, paraxylene, and industrial coatings and additives, as well as engages in the transportation, warehouse, and bagging packing management of polyethylene. The company was founded in 1978 and is headquartered in Bangkok, Thailand.

About Tronox

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.