ESI vs. CBT, OEC, HMY, VVV, NEU, CRS, ALTM, WFG, ICL, and AGI
Should you be buying Element Solutions stock or one of its competitors? The main competitors of Element Solutions include Cabot (CBT), Orion (OEC), Harmony Gold Mining (HMY), Valvoline (VVV), NewMarket (NEU), Carpenter Technology (CRS), Arcadium Lithium (ALTM), West Fraser Timber (WFG), ICL Group (ICL), and Alamos Gold (AGI). These companies are all part of the "basic materials" sector.
Element Solutions (NYSE:ESI) and Cabot (NYSE:CBT) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, institutional ownership, analyst recommendations, risk, profitability, media sentiment, dividends, valuation and earnings.
Cabot received 345 more outperform votes than Element Solutions when rated by MarketBeat users. Likewise, 61.92% of users gave Cabot an outperform vote while only 39.62% of users gave Element Solutions an outperform vote.
In the previous week, Cabot had 3 more articles in the media than Element Solutions. MarketBeat recorded 10 mentions for Cabot and 7 mentions for Element Solutions. Element Solutions' average media sentiment score of 1.17 beat Cabot's score of 1.01 indicating that Element Solutions is being referred to more favorably in the media.
Element Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Cabot pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Element Solutions pays out 59.3% of its earnings in the form of a dividend. Cabot pays out 20.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cabot is clearly the better dividend stock, given its higher yield and lower payout ratio.
Element Solutions presently has a consensus price target of $26.00, suggesting a potential upside of 9.24%. Cabot has a consensus price target of $93.67, suggesting a potential downside of 8.53%. Given Element Solutions' stronger consensus rating and higher probable upside, research analysts clearly believe Element Solutions is more favorable than Cabot.
Element Solutions has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Cabot has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
92.3% of Element Solutions shares are owned by institutional investors. Comparatively, 93.2% of Cabot shares are owned by institutional investors. 7.9% of Element Solutions shares are owned by company insiders. Comparatively, 3.1% of Cabot shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Cabot has a net margin of 11.51% compared to Element Solutions' net margin of 5.62%. Cabot's return on equity of 26.21% beat Element Solutions' return on equity.
Cabot has higher revenue and earnings than Element Solutions. Cabot is trading at a lower price-to-earnings ratio than Element Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
Cabot beats Element Solutions on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ESI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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