Chemtura (CHMT) versus Its Rivals Critical Analysis

Chemtura (NYSE: CHMT) is one of 47 public companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Chemtura to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

93.1% of Chemtura shares are owned by institutional investors. Comparatively, 65.1% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 2.6% of Chemtura shares are owned by insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Chemtura and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chemtura N/A N/A -176.32
Chemtura Competitors $1.91 billion $115.73 million 228.37

Chemtura’s peers have higher revenue and earnings than Chemtura. Chemtura is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Chemtura and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemtura 0 0 0 0 N/A
Chemtura Competitors 177 1064 1333 26 2.46

As a group, “Specialty Chemicals” companies have a potential downside of 1.32%. Given Chemtura’s peers higher possible upside, analysts clearly believe Chemtura has less favorable growth aspects than its peers.

Profitability

This table compares Chemtura and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemtura 5.71% 9.00% 4.02%
Chemtura Competitors -674.36% 6.45% -0.85%

About Chemtura

Chemtura Corporation is a chemical company. The Company is engaged in developing, manufacturing and marketing of engineered industrial specialty chemicals. The Company’s products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company’s segments are Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment manufactures and markets lubricant additive components, synthetic lubricant base-stocks, synthetic finished fluids, calcium sulfonate specialty greases and phosphate and polyester based fluids, and is also engaged in the development and production of hot cast elastomer pre-polymers. The Industrial Engineered Products segment develops and manufactures bromine and bromine-based products and organometallic compounds. The Company operates in a range of industries, including automotive, building and construction, electronics, lubricants, packaging and transportation.

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