Contrasting Rayonier Advanced Materials (RYAM) and Chemtura Corp (CHMT)

Rayonier Advanced Materials (NYSE: RYAM) and Chemtura Corp (NYSE:CHMT) are both specialty chemicals – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Dividends

Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Chemtura Corp does not pay a dividend. Rayonier Advanced Materials pays out 51.9% of its earnings in the form of a dividend.

Profitability

This table compares Rayonier Advanced Materials and Chemtura Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rayonier Advanced Materials 4.98% 18.12% 2.79%
Chemtura Corp 5.71% 9.00% 4.02%

Valuation & Earnings

This table compares Rayonier Advanced Materials and Chemtura Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Rayonier Advanced Materials $869.00 million 0.83 $73.28 million $0.54 30.98
Chemtura Corp N/A N/A N/A ($0.19) N/A

Rayonier Advanced Materials has higher revenue and earnings than Chemtura Corp. Chemtura Corp is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.5% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 93.1% of Chemtura Corp shares are owned by institutional investors. 2.1% of Rayonier Advanced Materials shares are owned by insiders. Comparatively, 2.6% of Chemtura Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Rayonier Advanced Materials and Chemtura Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rayonier Advanced Materials 0 0 5 0 3.00
Chemtura Corp 0 0 0 0 N/A

Rayonier Advanced Materials currently has a consensus price target of $19.20, indicating a potential upside of 14.76%.

Rayonier Advanced Materials Company Profile

Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.

Chemtura Corp Company Profile

Chemtura Corporation is a chemical company. The Company is engaged in developing, manufacturing and marketing of engineered industrial specialty chemicals. The Company’s products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company’s segments are Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment manufactures and markets lubricant additive components, synthetic lubricant base-stocks, synthetic finished fluids, calcium sulfonate specialty greases and phosphate and polyester based fluids, and is also engaged in the development and production of hot cast elastomer pre-polymers. The Industrial Engineered Products segment develops and manufactures bromine and bromine-based products and organometallic compounds. The Company operates in a range of industries, including automotive, building and construction, electronics, lubricants, packaging and transportation.

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