Head-To-Head Comparison: Celanese (CE) versus PQ Group (PQG)

Celanese (NYSE: CE) and PQ Group (NYSE:PQG) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares Celanese and PQ Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celanese 13.73% 32.96% 11.61%
PQ Group N/A N/A N/A

Dividends

Celanese pays an annual dividend of $1.84 per share and has a dividend yield of 1.8%. PQ Group does not pay a dividend. Celanese pays out 29.7% of its earnings in the form of a dividend. PQ Group has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

95.8% of Celanese shares are held by institutional investors. Comparatively, 66.0% of PQ Group shares are held by institutional investors. 0.4% of Celanese shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Celanese and PQ Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celanese 1 5 10 1 2.65
PQ Group 0 3 7 0 2.70

Celanese presently has a consensus price target of $113.21, indicating a potential upside of 10.46%. PQ Group has a consensus price target of $19.75, indicating a potential upside of 36.96%. Given PQ Group’s stronger consensus rating and higher probable upside, analysts clearly believe PQ Group is more favorable than Celanese.

Valuation and Earnings

This table compares Celanese and PQ Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celanese $6.14 billion 2.26 $843.00 million $6.19 16.56
PQ Group $1.06 billion 1.83 -$79.74 million N/A N/A

Celanese has higher revenue and earnings than PQ Group.

Summary

Celanese beats PQ Group on 11 of the 15 factors compared between the two stocks.

Celanese Company Profile

Celanese Corporation (Celanese) is a technology and specialty materials company. The Company’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, Acetyl Intermediates and Other Activities. The Advanced Engineered Materials segment includes the Company’s engineered materials business and certain affiliates. The Consumer Specialties segment includes the Company’s cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. The Industrial Specialties segment includes the Company’s emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses. The Acetyl Intermediates segment includes the Company’s intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. The Company has operations in North America, Europe and Asia. As of December 31, 2016, the Company had 30 global production facilities.

PQ Group Company Profile

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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