Orion Engineered Carbons (OEC) versus Venator Materials (VNTR) Critical Comparison

Orion Engineered Carbons (NYSE: OEC) and Venator Materials (NYSE:VNTR) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Dividends

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Orion Engineered Carbons pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Venator Materials does not pay a dividend. Orion Engineered Carbons pays out 49.1% of its earnings in the form of a dividend.

Profitability

This table compares Orion Engineered Carbons and Venator Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Engineered Carbons 5.69% 123.23% 9.03%
Venator Materials N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings for Orion Engineered Carbons and Venator Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Engineered Carbons 0 1 6 0 2.86
Venator Materials 0 3 12 0 2.80

Orion Engineered Carbons currently has a consensus target price of $28.33, indicating a potential upside of 4.67%. Venator Materials has a consensus target price of $27.53, indicating a potential upside of 54.08%. Given Venator Materials’ higher probable upside, analysts plainly believe Venator Materials is more favorable than Orion Engineered Carbons.

Institutional and Insider Ownership

85.6% of Orion Engineered Carbons shares are owned by institutional investors. Comparatively, 45.4% of Venator Materials shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Orion Engineered Carbons and Venator Materials’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orion Engineered Carbons $1.33 billion 1.21 $75.53 million $1.63 16.61
Venator Materials $2.21 billion 0.86 $134.00 million $1.74 10.27

Venator Materials has higher revenue and earnings than Orion Engineered Carbons. Venator Materials is trading at a lower price-to-earnings ratio than Orion Engineered Carbons, indicating that it is currently the more affordable of the two stocks.

Summary

Orion Engineered Carbons beats Venator Materials on 8 of the 14 factors compared between the two stocks.

About Orion Engineered Carbons

Orion Engineered Carbons S.A., together with its subsidiaries, produces and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. It operates through two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; and various conductive carbon black grades for use in polymer and printing applications, as well as in silicon, non-woven textile, building material, battery electrodes metallurgical, agrochemical, and carbon brush applications. It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. The company was formerly known as Orion Engineered Carbons S.à r.l. and changed its name to Orion Engineered Carbons, S.A. in July 2014. Orion Engineered Carbons S.A. was incorporated in 2011 and is headquartered in Luxembourg. Orion Engineered Carbons S.A. is a subsidiary of Kinove Luxembourg Holdings 1 S.a r.l.

About Venator Materials

Venator Materials PLC manufactures and markets chemical products worldwide. It operates through two segments, Titanium Dioxide and Performance Additives. The Titanium Dioxide segment offers titanium dioxide (TiO2), such as rutile, anatase, and nano TiO2 products for use in coatings, plastics, paper, printing inks, fibers, and food and personal care products. The Performance Additives segment provides barium and zinc additives for use in coatings, films, pharmaceuticals, and paper and glass fiber reinforced plastics; colored inorganic pigments comprising iron oxides, ultramarines, specialty inorganics chemicals, and driers for construction, coating, plastic, and specialty markets; and wood protection chemicals for use in residential and commercial applications, as well as water treatment chemicals. The company markets its products through specialty distributors, as well as sales and technical services network. Venator Materials PLC was founded in 2017 and is headquartered in The Woodlands, Texas.

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