Comparing Kraton (KRA) & Mexichem (MXCHY)

Kraton (NYSE: KRA) and Mexichem (OTCMKTS:MXCHY) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kraton and Mexichem, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraton 1 1 2 0 2.25
Mexichem 0 0 0 0 N/A

Kraton currently has a consensus price target of $56.33, indicating a potential upside of 15.08%. Given Kraton’s higher probable upside, equities research analysts plainly believe Kraton is more favorable than Mexichem.

Institutional & Insider Ownership

95.4% of Kraton shares are held by institutional investors. 4.7% of Kraton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Kraton has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Mexichem has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Dividends

Mexichem pays an annual dividend of $0.12 per share and has a dividend yield of 2.0%. Kraton does not pay a dividend.

Profitability

This table compares Kraton and Mexichem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kraton 5.65% 18.07% 3.80%
Mexichem N/A N/A N/A

Valuation & Earnings

This table compares Kraton and Mexichem’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kraton $1.96 billion 0.80 $97.54 million $2.85 17.18
Mexichem $5.35 billion 1.18 $238.39 million N/A N/A

Mexichem has higher revenue and earnings than Kraton.

Summary

Kraton beats Mexichem on 7 of the 12 factors compared between the two stocks.

Kraton Company Profile

Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Polymer and Chemical. The Polymer segment offers performance products, including styrene-butadiene-styrene and styrene-isoprene-styrene; and specialty polymers, such as hydrogenated styrenic block copolymers, as well as isoprene rubber and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings. The Chemical segment provides pine-based specialty products that include rosin-based tackifiers for packaging and pressure-sensitive adhesive applications; terpene-based tackifiers for bookbinding, hygiene, and pressure-sensitive adhesive applications; alpha-methyl-styrene (AMS) resins for bookbinding and pressure-sensitive adhesive applications; and hot melt polyamides for flexible packaging. It also provides rosin-based binders for the thermoplastic pavement marking submarket; sells tall oil fatty acids for the asphalt paving market; and produces rosin esters and insoluble maleic-based tackifiers, as well as bitumen additives. In addition, this segment offers terpene-based tread enhancement resins and AMS-based tread enhancement additives, as well as distilled tall oil and rosins for enhancing the performance and manufacturing of high performance, winter, and all-season tires. Further, it provides dimer acids, tall oil rosins, and terpene fractions for fuel additive, oilfield chemical, mining fluid, coating, metalworking fluid and lubricant, and other applications. The company sells its products through various channels, including direct sales force, marketing representatives, and distributors under the Kraton and Cariflex brands. The company was formerly known as Kraton Performance Polymers, Inc. and changed its name to Kraton Corporation in September 2016. Kraton Corporation is based in Houston, Texas.

Mexichem Company Profile

Mexichem, S.A.B. de C.V. manufactures and markets chemicals and petrochemical products, and plastic pipes and fittings worldwide. The company operates through Vinyl, Energy, Fluor, and Fluent segments. The company offers base chemicals, specialty resins, PVC resins, compounds, PA and plasticizers, phosphates, and other chemicals for automotive, industrial, clothing, food and beverages, healthcare, home, lawn and garden, building and construction, wire and cable, paints, inks and colorants, and other markets; woven and non-woven geosynthetics, irrigation systems, and datacom and infrastructure products, as well as PVC, polyethylene, and polypropylene pipes and fittings for agriculture, infrastructure, housing, energy, datacom, and other markets; and met and acid grade fluorspars, hydrofluoric acid, aluminum fluoride, refrigerants, and medical propellants for refrigeration, chemicals, building and construction, medicals, and aluminum markets. Mexichem, S.A.B. de C.V. is headquartered in Tlalnepantla de Baz, Mexico. Mexichem, S.A.B. de C.V. is a subsidiary of Kaluz, S.A. de C.V.

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