OM Group (NYSE: OMG) and Orion Engineered Carbons (NYSE:OEC) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Insider and Institutional Ownership
85.6% of Orion Engineered Carbons shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares OM Group and Orion Engineered Carbons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orion Engineered Carbons||5.69%||123.23%||9.03%|
Earnings & Valuation
This table compares OM Group and Orion Engineered Carbons’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orion Engineered Carbons||$1.33 billion||1.23||$75.53 million||$1.25||22.00|
Orion Engineered Carbons has higher revenue and earnings than OM Group. OM Group is trading at a lower price-to-earnings ratio than Orion Engineered Carbons, indicating that it is currently the more affordable of the two stocks.
Orion Engineered Carbons pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. OM Group does not pay a dividend. Orion Engineered Carbons pays out 64.0% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for OM Group and Orion Engineered Carbons, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orion Engineered Carbons||0||1||6||0||2.86|
Orion Engineered Carbons has a consensus target price of $28.33, suggesting a potential upside of 3.03%.
Orion Engineered Carbons beats OM Group on 8 of the 9 factors compared between the two stocks.
About OM Group
OM Group, Inc. is a United States-based industrial company. The Company is engaged in serving global markets, including automotive systems, electronic devices, aerospace and defense, industrial and medical. It operates in three business segments: Magnetic Technologies, Battery Technologies and Specialty Chemicals. Its Magnetic Technologies segment develops, manufactures and distributes industrial-use magnetic materials and related products to an array of end markets, including automotive systems, electrical installation technology, industrial, retail and renewable energy. The Company’s Battery Technologies segment provides batteries, battery management systems, and energetic devices for defense, space and medical markets. The Company’s Specialty Chemicals segment develops, produces and supplies chemicals for electronic applications, industrial applications including coatings, composites and tire, and photomasks used by customers to produce semiconductors and related products.
About Orion Engineered Carbons
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
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