Chemtura (NYSE: CHMT) and Terravia (OTCMKTS:TVIAQ) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
93.1% of Chemtura shares are held by institutional investors. Comparatively, 0.2% of Terravia shares are held by institutional investors. 2.6% of Chemtura shares are held by insiders. Comparatively, 10.1% of Terravia shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Chemtura and Terravia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Terravia has a consensus target price of $1.50, indicating a potential upside of 59,900.00%. Given Terravia’s higher probable upside, analysts plainly believe Terravia is more favorable than Chemtura.
Valuation and Earnings
This table compares Chemtura and Terravia’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Terravia||$18.48 million||0.01||-$101.55 million||($1.10)||0.00|
Chemtura has higher earnings, but lower revenue than Terravia. Chemtura is trading at a lower price-to-earnings ratio than Terravia, indicating that it is currently the more affordable of the two stocks.
This table compares Chemtura and Terravia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Chemtura beats Terravia on 5 of the 8 factors compared between the two stocks.
Chemtura Company Profile
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.
Terravia Company Profile
Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.
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