Analyzing Cytec Industries (CYT) and Kronos Worldwide (KRO)

Cytec Industries (NYSE: CYT) and Kronos Worldwide (NYSE:KRO) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Institutional and Insider Ownership

15.4% of Kronos Worldwide shares are held by institutional investors. 0.1% of Kronos Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cytec Industries and Kronos Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cytec Industries N/A N/A N/A N/A N/A
Kronos Worldwide $1.50 billion 1.86 $240.60 million $2.41 9.98

Kronos Worldwide has higher revenue and earnings than Cytec Industries.

Analyst Ratings

This is a breakdown of recent ratings for Cytec Industries and Kronos Worldwide, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytec Industries 0 0 0 0 N/A
Kronos Worldwide 1 1 0 0 1.50

Kronos Worldwide has a consensus price target of $17.00, suggesting a potential downside of 29.34%. Given Kronos Worldwide’s higher probable upside, analysts plainly believe Kronos Worldwide is more favorable than Cytec Industries.

Profitability

This table compares Cytec Industries and Kronos Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytec Industries 11.96% 18.60% 8.55%
Kronos Worldwide 18.57% 24.73% 9.09%

Dividends

Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Cytec Industries does not pay a dividend. Kronos Worldwide pays out 24.9% of its earnings in the form of a dividend. Cytec Industries has increased its dividend for 3 consecutive years.

Summary

Kronos Worldwide beats Cytec Industries on 8 of the 11 factors compared between the two stocks.

About Cytec Industries

Cytec Industries Inc. is a global specialty materials and chemicals company focused on developing, manufacturing and selling value-added products. The Company offers aerospace and industrial materials, mining and plastics industries. The Company operates through four segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials, which serve automotive, motorsports, recreation, tooling, and other structural materials markets and process materials, which serves aerospace, wind energy, and other process materials markets. The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives, and formulated resins. The Company operates as a wholly owned subsidiary of Solvay.

About Kronos Worldwide

Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.

Receive News & Ratings for Cytec Industries Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cytec Industries Inc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply