Financial Comparison: OCI Partners (OCIP) and Ashland (ASH)

OCI Partners (NYSE: OCIP) and Ashland (NYSE:ASH) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Risk and Volatility

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OCI Partners has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Ashland has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for OCI Partners and Ashland, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 0 1 0 0 2.00
Ashland 0 2 7 0 2.78

OCI Partners currently has a consensus target price of $7.00, suggesting a potential downside of 23.50%. Ashland has a consensus target price of $85.43, suggesting a potential upside of 24.53%. Given Ashland’s stronger consensus rating and higher probable upside, analysts clearly believe Ashland is more favorable than OCI Partners.

Profitability

This table compares OCI Partners and Ashland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OCI Partners 7.30% 16.67% 3.83%
Ashland -0.08% 7.14% 2.73%

Earnings and Valuation

This table compares OCI Partners and Ashland’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OCI Partners $343.33 million 2.32 $24.47 million N/A N/A
Ashland $3.26 billion 1.31 $1.00 million $2.44 28.11

OCI Partners has higher earnings, but lower revenue than Ashland.

Dividends

OCI Partners pays an annual dividend of $1.08 per share and has a dividend yield of 11.8%. Ashland pays an annual dividend of $0.90 per share and has a dividend yield of 1.3%. Ashland pays out 36.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

14.0% of OCI Partners shares are owned by institutional investors. Comparatively, 93.6% of Ashland shares are owned by institutional investors. 1.1% of Ashland shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

OCI Partners beats Ashland on 9 of the 15 factors compared between the two stocks.

OCI Partners Company Profile

OCI Partners LP produces, markets, and sells methanol and ammonia in the United States. The company offers its products to industrial users and commercial traders for further processing or distribution. OCI GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Nederland, Texas. OCI Partners LP is a subsidiary of OCIP Holding LLC.

Ashland Company Profile

Ashland Global Holdings Inc. provides specialty chemical solutions worldwide. Its Specialty Ingredients segment provides products, technologies, and resources for solving formulation and product-performance challenges. It offers solutions using natural, synthetic, and semisynthetic polymers derived from plant and seed extract, cellulose ethers, vinyl pyrrolidones, and acrylic polymers, as well as polyester and polyurethane-based adhesives. This segment offers its solutions for pharmaceutical companies; makers of personal care products, food, and beverages; manufacturers of paint, coatings, and construction materials; makers of nutraceuticals and supplements; packaging and converting markets; and oilfield service companies. The company's Composites segment manufactures and sells a range of unsaturated polyester and vinyl ester resins, gelcoats, and low-profile additives for the reinforced plastics industry; and molten maleic anhydride for the manufacture of various products, such as unsaturated polyester resins, copolymers, lubricating oil additives, alkenyl succinic anhydrides, malic acid, fumaric acid, and derivative chemicals. This segment serves manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boat builders; chemical producers; and electronics makers. Its Intermediates and Solvents segment produces 1,4 butanediol and related derivatives, including tetrahydrofuran and n-methylpyrrolidone that are used as chemical intermediates in the production of engineering polymers and polyurethanes, as well as specialty process solvents used in electronics, pharmaceuticals, water filtration membranes, and others. The company was formerly known as Ashland Inc. and changed its name to Ashland Global Holdings Inc. in September 2016. Ashland Global Holdings Inc. was founded in 1924 and is headquartered in Covington, Kentucky.

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