Head-To-Head Survey: Trinseo (NYSE:TSE) versus Its Peers

Trinseo (NYSE: TSE) is one of 52 publicly-traded companies in the “Specialty Chemicals” industry, but how does it contrast to its peers? We will compare Trinseo to related businesses based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Trinseo and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 3 0 2.60
Trinseo Competitors 170 1061 1327 24 2.47

Trinseo currently has a consensus target price of $76.25, suggesting a potential upside of 7.55%. As a group, “Specialty Chemicals” companies have a potential downside of 3.23%. Given Trinseo’s stronger consensus rating and higher probable upside, analysts plainly believe Trinseo is more favorable than its peers.

Earnings and Valuation

This table compares Trinseo and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Trinseo $3.72 billion $318.31 million 11.10
Trinseo Competitors $1.98 billion $124.01 million 244.78

Trinseo has higher revenue and earnings than its peers. Trinseo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

97.1% of Trinseo shares are owned by institutional investors. Comparatively, 66.7% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 0.3% of Trinseo shares are owned by company insiders. Comparatively, 7.7% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.0%. Trinseo pays out 22.5% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.1% of their earnings in the form of a dividend. Trinseo is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Trinseo and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trinseo 6.78% 65.80% 13.58%
Trinseo Competitors -4.94% 2.19% 3.94%

Volatility & Risk

Trinseo has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Trinseo’s peers have a beta of 1.42, meaning that their average stock price is 42% more volatile than the S&P 500.

Summary

Trinseo beats its peers on 12 of the 15 factors compared.

Trinseo Company Profile

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

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