Cabot (NYSE: CBT) and Cytec Industries (NYSE:CYT) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Institutional & Insider Ownership
84.8% of Cabot shares are held by institutional investors. 2.5% of Cabot shares are held by 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.
Cabot pays an annual dividend of $1.26 per share and has a dividend yield of 2.2%. Cytec Industries does not pay a dividend. Cabot pays out 33.1% of its earnings in the form of a dividend. Cabot has increased its dividend for 3 consecutive years and Cytec Industries has increased its dividend for 5 consecutive years.
This table compares Cabot and Cytec Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Cabot and Cytec Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabot presently has a consensus target price of $61.33, suggesting a potential upside of 4.90%. Given Cabot’s higher probable upside, equities analysts clearly believe Cabot is more favorable than Cytec Industries.
Earnings & Valuation
This table compares Cabot and Cytec Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cabot||$2.72 billion||1.33||$241.00 million||$3.81||15.35|
Cabot has higher revenue and earnings than Cytec Industries. Cabot is trading at a lower price-to-earnings ratio than Cytec Industries, indicating that it is currently the more affordable of the two stocks.
Cabot beats Cytec Industries on 7 of the 12 factors compared between the two stocks.
Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through four business segments: reinforcement materials, performance chemicals, purification solutions and specialty fluids. Reinforcement materials’ rubber grade carbon blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Its rubber blacks products are used in tires and industrial products. Performance Chemicals consists of two businesses: specialty carbons and formulations business, and metal oxides business. Purification Solutions’ activated carbon products are used for the purification of water, air and pharmaceuticals, among others, as either a colorant or a decolorizing agent in the production of food and beverage applications. Its specialty fluids segment produces and markets cesium formate as a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction.
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.
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