Enzymotec (NASDAQ: ENZY) and Eastman Chemical (NYSE:EMN) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Volatility and Risk
Enzymotec has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Eastman Chemical has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Eastman Chemical pays an annual dividend of $2.04 per share and has a dividend yield of 2.4%. Enzymotec does not pay a dividend. Eastman Chemical pays out 32.3% of its earnings in the form of a dividend. Eastman Chemical has increased its dividend for 5 consecutive years.
This is a breakdown of recent recommendations for Enzymotec and Eastman Chemical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enzymotec currently has a consensus price target of $8.00, suggesting a potential downside of 29.20%. Eastman Chemical has a consensus price target of $90.00, suggesting a potential upside of 5.93%. Given Eastman Chemical’s stronger consensus rating and higher possible upside, analysts clearly believe Eastman Chemical is more favorable than Enzymotec.
Valuation & Earnings
This table compares Enzymotec and Eastman Chemical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enzymotec||$47.01 million||5.52||-$4.56 million||($0.29)||-38.97|
|Eastman Chemical||$9.20 billion||1.34||$2.15 billion||$6.32||13.44|
Eastman Chemical has higher revenue and earnings than Enzymotec. Enzymotec is trading at a lower price-to-earnings ratio than Eastman Chemical, indicating that it is currently the more affordable of the two stocks.
This table compares Enzymotec and Eastman Chemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
27.9% of Enzymotec shares are held by institutional investors. Comparatively, 82.1% of Eastman Chemical shares are held by institutional investors. 1.1% of Eastman Chemical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Eastman Chemical beats Enzymotec on 14 of the 16 factors compared between the two stocks.
Enzymotec Company Profile
Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.
Eastman Chemical Company Profile
Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.
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