Head to Head Review: OCI Partners (NYSE:OCIP) vs. Its Rivals

OCI Partners (NYSE: OCIP) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it weigh in compared to its peers? We will compare OCI Partners to related companies based on the strength of its analyst recommendations, earnings, dividends, institutional ownership, profitability, valuation and risk.

Volatility and Risk

OCI Partners has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, OCI Partners’ peers have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
OCI Partners -1.79% -3.70% -0.86%
OCI Partners Competitors -4.96% 2.16% 3.93%

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
OCI Partners $258.23 million -$50.55 million -104.99
OCI Partners Competitors $1.97 billion $124.34 million 244.78

OCI Partners’ peers have higher revenue and earnings than OCI Partners. OCI Partners 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 and Insider Ownership

15.0% of OCI Partners shares are owned by institutional investors. Comparatively, 67.7% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 7.5% of shares of all “Specialty Chemicals” companies are owned by 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

OCI Partners pays an annual dividend of $0.48 per share and has a dividend yield of 6.5%. OCI Partners pays out -685.6% 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 24.2% of their earnings in the form of a dividend. OCI Partners is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for OCI Partners and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 1 0 0 0 1.00
OCI Partners Competitors 170 1061 1327 24 2.47

OCI Partners currently has a consensus target price of $7.00, indicating a potential downside of 4.76%. As a group, “Specialty Chemicals” companies have a potential downside of 3.17%. Given OCI Partners’ peers stronger consensus rating and higher possible upside, analysts clearly believe OCI Partners has less favorable growth aspects than its peers.

Summary

OCI Partners peers beat OCI Partners on 11 of the 14 factors compared.

About OCI Partners

OCI Partners LP owns and operates an integrated methanol and ammonia production facility that is located on the Texas Gulf Coast near Beaumont. The Company has an annual methanol production capacity of approximately 912,500 metric tons and an annual ammonia production capacity of approximately 331,000 metric tons. It purchases natural gas from third parties and processes the natural gas into synthesis gas, which it then further processes in the production of methanol and ammonia. It stores and sells the processed methanol and ammonia to industrial and commercial customers for further processing or distribution. Its methanol production unit comprises Foster-Wheeler-designed twin steam methane reformers for synthesis gas production, over two Lurgi-designed parallel low-pressure, water-cooled reactors and approximately four distillation columns. The Haldor-Topsoe-designed ammonia synthesis loop at its facility processes hydrogen produced by methanol production process.

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