Elementis (OTCMKTS:EMNSF) & Quaker Chemical (NYSE:KWR) Critical Contrast

Elementis (OTCMKTS:EMNSFGet Free Report) and Quaker Chemical (NYSE:KWRGet Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Elementis and Quaker Chemical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elementis 0 2 1 0 2.33
Quaker Chemical 0 0 3 0 3.00

Quaker Chemical has a consensus target price of $239.00, indicating a potential upside of 25.64%. Given Quaker Chemical’s stronger consensus rating and higher possible upside, analysts clearly believe Quaker Chemical is more favorable than Elementis.

Institutional & Insider Ownership

66.0% of Elementis shares are held by institutional investors. Comparatively, 77.5% of Quaker Chemical shares are held by institutional investors. 1.3% of Quaker Chemical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Elementis and Quaker Chemical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elementis N/A N/A N/A $0.24 6.96
Quaker Chemical $1.94 billion 1.76 -$15.93 million $0.90 211.37

Elementis has higher earnings, but lower revenue than Quaker Chemical. Elementis is trading at a lower price-to-earnings ratio than Quaker Chemical, indicating that it is currently the more affordable of the two stocks.

Dividends

Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 4.8%. Quaker Chemical pays an annual dividend of $1.82 per share and has a dividend yield of 1.0%. Elementis pays out 33.3% of its earnings in the form of a dividend. Quaker Chemical pays out 202.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Quaker Chemical has increased its dividend for 16 consecutive years. Elementis is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Elementis and Quaker Chemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elementis N/A N/A N/A
Quaker Chemical 0.84% 9.89% 4.66%

Summary

Quaker Chemical beats Elementis on 12 of the 14 factors compared between the two stocks.

About Elementis

(Get Free Report)

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates through Personal Care, Coatings, and Talc segments. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for AP deodorants, for personal care manufacturers. The Coating segment produces rheological modifiers and additives for decorative and industrial coatings. The Talc segment engages in the production and supply of talc for plastics, coatings, technical ceramics, and the paper sectors. The company also offers personal care products for antiperspirants/deodorants, bath and soap, color cosmetics, and hair and skin care products; and coating products for adhesive and sealants, architectural coatings, ceramics, colorant dispersions, construction, drilling fluid additives, industrial finishes, inks, and lubricant additive application, as well as paints and coating, paper, plastics, polyester putties, pulp, stimulation, and specialty applications. It also offers talc products for food and pharmaceuticals markets. The company was founded in 1844 and is headquartered in London, the United Kingdom.

About Quaker Chemical

(Get Free Report)

Quaker Chemical Corporation, doing business as Quaker Houghton, develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

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