Head-To-Head Contrast: PQ Group (PQG) vs. Nexeo Solutions (NXEO)

PQ Group (NYSE: PQG) and Nexeo Solutions (NASDAQ:NXEO) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares PQ Group and Nexeo Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PQ Group $1.47 billion 1.65 $57.60 million $0.46 39.13
Nexeo Solutions $3.64 billion 0.23 $14.40 million $0.33 27.67

PQ Group has higher earnings, but lower revenue than Nexeo Solutions. Nexeo Solutions is trading at a lower price-to-earnings ratio than PQ Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PQ Group and Nexeo Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PQ Group 0 2 9 0 2.82
Nexeo Solutions 0 2 2 0 2.50

PQ Group currently has a consensus price target of $19.77, suggesting a potential upside of 9.85%. Nexeo Solutions has a consensus price target of $11.17, suggesting a potential upside of 22.31%. Given Nexeo Solutions’ higher possible upside, analysts plainly believe Nexeo Solutions is more favorable than PQ Group.

Profitability

This table compares PQ Group and Nexeo Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PQ Group N/A N/A N/A
Nexeo Solutions 1.30% 11.16% 2.01%

Institutional and Insider Ownership

66.7% of PQ Group shares are held by institutional investors. Comparatively, 96.1% of Nexeo Solutions shares are held by institutional investors. 3.3% of PQ Group shares are held by company insiders. Comparatively, 0.6% of Nexeo Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

PQ Group beats Nexeo Solutions on 7 of the 13 factors compared between the two stocks.

PQ Group Company Profile

PQ Group Holdings Inc. provides catalysts, specialty materials and chemicals, and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates in two segments, Environmental Catalysts and Services; and Performance Materials and Chemicals. It primarily offers refinery catalysts, emissions control catalysts, and catalyst recycling services for fuels and emission controls use; silica gels for edible oil and beer clarification; precipitated silicas and zeolites for the surface coating, dentifrice, and dishwasher and laundry detergent applications; reflective markings for roadways and airports; and hollow glass beads or microspheres for cement additive, metal finishing, and oil well cement uses. The company also provides catalysts for high-density polyethylene and chemicals syntheses; antiblocks for film packaging; solid and hollow microspheres for composite plastics; silicate precursors for the tire industry; silicate for water treatment and drilling muds; sulfur derivatives for copper mining; and bleaching aids for paper. PQ Group Holdings Inc. was incorporated in 2015 and is headquartered in Malvern, Pennsylvania.

Nexeo Solutions Company Profile

Nexeo Solutions, Inc. operates as a chemical and plastic products distributor in North America, Europe, the Middle East, Africa, and Asia. The company operates through Chemicals, Plastics, and Environmental Services segments. It provides approximately 22,000 products used in various industries, including household, industrial and institutional, lubricants, architectural coatings, adhesives, sealants, elastomers, automotive, healthcare, personal care, oil and gas, and construction. The company was formerly known as WL Ross Holding Corp. and changed its name to Nexeo Solutions, Inc. in June 2016. Nexeo Solutions, Inc. was founded in 2014 and is based in The Woodlands, Texas.

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