Celanese (CE) versus Enzymotec (ENZY) Financial Analysis

Celanese (NYSE: CE) and Enzymotec (NASDAQ:ENZY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Celanese and Enzymotec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celanese 1 4 9 1 2.67
Enzymotec 0 2 0 0 2.00

Celanese currently has a consensus target price of $107.85, suggesting a potential upside of 1.88%. Enzymotec has a consensus target price of $11.75, suggesting a potential downside of 0.42%. Given Celanese’s stronger consensus rating and higher probable upside, research analysts clearly believe Celanese is more favorable than Enzymotec.

Profitability

This table compares Celanese and Enzymotec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celanese 13.66% 31.98% 11.39%
Enzymotec -12.32% -3.26% -2.99%

Earnings and Valuation

This table compares Celanese and Enzymotec’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celanese $5.39 billion 2.66 $900.00 million $5.73 18.47
Enzymotec $47.70 million 5.80 -$2.92 million ($0.26) -45.38

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

Dividends

Celanese pays an annual dividend of $1.84 per share and has a dividend yield of 1.7%. Enzymotec does not pay a dividend. Celanese pays out 32.1% of its earnings in the form of a dividend. Enzymotec has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

96.2% of Celanese shares are held by institutional investors. Comparatively, 15.7% of Enzymotec shares are held by institutional investors. 0.4% of Celanese shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Celanese has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Enzymotec has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Summary

Celanese beats Enzymotec on 14 of the 17 factors compared between the two stocks.

About Celanese

Celanese Corporation (Celanese) is a technology and specialty materials company. The Company’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, Acetyl Intermediates and Other Activities. The Advanced Engineered Materials segment includes the Company’s engineered materials business and certain affiliates. The Consumer Specialties segment includes the Company’s cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. The Industrial Specialties segment includes the Company’s emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses. The Acetyl Intermediates segment includes the Company’s intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. The Company has operations in North America, Europe and Asia. As of December 31, 2016, the Company had 30 global production facilities.

About Enzymotec

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.

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