Comparing REX American Resources (REX) & Braskem (BAK)

REX American Resources (NYSE: REX) and Braskem (NYSE:BAK) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for REX American Resources and Braskem, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REX American Resources 0 0 0 0 N/A
Braskem 0 0 2 0 3.00

Dividends

Braskem pays an annual dividend of $1.02 per share and has a dividend yield of 3.9%. REX American Resources does not pay a dividend. Braskem pays out 31.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

92.7% of REX American Resources shares are owned by institutional investors. Comparatively, 0.6% of Braskem shares are owned by institutional investors. 12.5% of REX American Resources shares are owned by insiders. Comparatively, 0.0% of Braskem shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares REX American Resources and Braskem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REX American Resources 8.77% 6.18% 5.41%
Braskem 6.12% 51.49% 6.20%

Earnings and Valuation

This table compares REX American Resources and Braskem’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REX American Resources $452.59 million 1.09 $39.70 million N/A N/A
Braskem $18.26 billion 0.57 $1.28 billion $3.20 8.23

Braskem has higher revenue and earnings than REX American Resources.

Volatility and Risk

REX American Resources has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Braskem has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Summary

REX American Resources beats Braskem on 7 of the 13 factors compared between the two stocks.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol. It operates through two segments, Ethanol and By-Products, and Refined Coal. The company also offers dried distillers grains, modified distillers grains, and non-food grade corn oil. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed; and produces, processes, and sells refined coal. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. Its Basic Petrochemicals segment offers olefins, such as ethylene, polymer and chemical grade propylene, butadiene, and butene-1; BTX products comprising benzene, para-xylene, and toluene; fuels, including automotive gasoline, liquefied petroleum gas, ethyl tertiary butyl ether, and methyl tertiary butyl ether; intermediates, such as cumene; and aliphatics, aromatics, and hydrogenates solvents, as well as specialties, such as isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also supplies electric energy, steam, compressed air, and other products to second-generation producers. Its Polyolefins segment produces polyethylene, including LDPE, LLDPE, HDPE, ultra-high molecular weight polyethylene, and EVA; green polyethylene from renewable resources; and polypropylene. This segment's products are used in plastic films for food and industrial packaging; bottles, shopping bags, and other consumer goods containers; automotive parts; engineering and infra-structure goods; and household appliances. Its Vinyls segment produces polyvinyl chloride, caustic soda, chlorine, hydrogen, caustic soda flake, and sodium hypochlorite. The company's USA and Europe segment produces polypropylene in the United States and Germany. Braskem S.A.'s Mexico segment produces, operates, and sells ethylene, HDPE, and LDPE in Mexico. It also imports and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.

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