Comparing PolyOne (POL) & Its Peers

PolyOne (NYSE: POL) is one of 14 public companies in the “Plastics materials & resins” industry, but how does it contrast to its peers? We will compare PolyOne to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, risk, profitability and institutional ownership.

Volatility and Risk

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PolyOne has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, PolyOne’s peers have a beta of -2.68, indicating that their average share price is 368% less volatile than the S&P 500.

Dividends

PolyOne pays an annual dividend of $0.70 per share and has a dividend yield of 1.6%. PolyOne pays out 31.7% of its earnings in the form of a dividend. As a group, “Plastics materials & resins” companies pay a dividend yield of 2.1% and pay out 30.6% of their earnings in the form of a dividend. PolyOne has raised its dividend for 6 consecutive years. PolyOne lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings for PolyOne and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PolyOne 0 3 4 0 2.57
PolyOne Competitors 42 360 667 22 2.61

PolyOne presently has a consensus target price of $45.00, indicating a potential upside of 1.03%. As a group, “Plastics materials & resins” companies have a potential upside of 13.33%. Given PolyOne’s peers stronger consensus rating and higher possible upside, analysts clearly believe PolyOne has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares PolyOne and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PolyOne $3.23 billion -$57.70 million 20.15
PolyOne Competitors $9.05 billion $413.23 million 17.60

PolyOne’s peers have higher revenue and earnings than PolyOne. PolyOne is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
PolyOne -1.73% 29.46% 6.68%
PolyOne Competitors 6.60% 23.59% 8.10%

Institutional & Insider Ownership

93.9% of PolyOne shares are held by institutional investors. Comparatively, 80.9% of shares of all “Plastics materials & resins” companies are held by institutional investors. 1.3% of PolyOne shares are held by insiders. Comparatively, 1.7% of shares of all “Plastics materials & resins” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

PolyOne peers beat PolyOne on 11 of the 15 factors compared.

PolyOne Company Profile

PolyOne Corporation (PolyOne) provides specialized polymer materials, services and solutions. The Company’s segments include Color, Additives and Inks; Specialty Engineered Materials; Performance Products and Solutions, and PolyOne Distribution. The Color, Additives and Inks segment provides custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets. The Specialty Engineered Materials segment provides specialty polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials. The Performance Products and Solutions segment consists of the Geon Performance Materials and Producer Services business units. As of December 31, 2016, the PolyOne Distribution segment distributed more than 4,000 grades of engineering and commodity grade resins.

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