Analyzing A. Schulman (SHLM) and PQ Group Holdings (PQG)

A. Schulman (NASDAQ: SHLM) and PQ Group Holdings (NYSE:PQG) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

A. Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 2.2%. PQ Group Holdings does not pay a dividend. A. Schulman pays out -6.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for A. Schulman and PQ Group Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A. Schulman 0 2 1 0 2.33
PQ Group Holdings 0 3 7 0 2.70

A. Schulman currently has a consensus price target of $35.00, indicating a potential downside of 5.15%. PQ Group Holdings has a consensus price target of $19.85, indicating a potential upside of 17.32%. Given PQ Group Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe PQ Group Holdings is more favorable than A. Schulman.

Earnings and Valuation

This table compares A. Schulman and PQ Group Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
A. Schulman $2.42 billion 0.45 $207.01 million ($12.50) -2.95
PQ Group Holdings N/A N/A N/A N/A N/A

A. Schulman has higher revenue and earnings than PQ Group Holdings.

Institutional & Insider Ownership

84.2% of A. Schulman shares are owned by institutional investors. Comparatively, 1.4% of PQ Group Holdings shares are owned by institutional investors. 4.1% of A. Schulman shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares A. Schulman and PQ Group Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A. Schulman -14.86% 35.64% 3.29%
PQ Group Holdings N/A N/A N/A

Summary

A. Schulman beats PQ Group Holdings on 7 of the 11 factors compared between the two stocks.

About A. Schulman

A. Schulman, Inc. is an international supplier of plastic formulations, resins and services, and provides solutions to its customers’ requirements through custom-formulated products. The Company’s customers span a range of markets, such as packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, and sports, home and leisure. The Company’s segments include Europe, Middle East and Africa (EMEA), the United States and Canada (USCAN), Latin America (LATAM), Asia Pacific (APAC) and Engineered Composites (EC). As of August 31, 2016, the Company operated in six product families, including custom performance colors (CPC), engineered composites, Masterbatch solutions, engineered plastics, specialty powders and distribution services. The CPC product family offers powdered, pelletized and liquid color concentrates that are custom-designed for thermoplastic resins.

About PQ Group Holdings

PQ Group Holdings Inc is a global provider of catalysts, specialty materials, chemicals and services that enable environmental improvements. The Company’s products and solutions help companies produce vehicles with fuel efficiency. The Company has developed zeolite-based catalysts to reduce pollutants in diesel engines. The Company’s segments include environmental catalysts and services, and performance materials and chemicals. Environmental catalysts and services segment has three product groups, including silica catalysts, zeolite catalysts, and refining services. Silica catalysts product group sells both the finished catalyst and catalysts supports, for the production of high-density polyethylene (HDPE).zeolite catalysts product group is a supplier of emissions control catalysts as well as a supplier of specialty catalysts, precursors, and formulations. Performance materials and chemicals segment has two product groups, including performance materials and performance chemicals.

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