Trinseo (TSE) vs. Mexichem (MXCHY) Financial Survey

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

Insider & Institutional Ownership

97.0% of Trinseo shares are held by institutional investors. 0.3% of Trinseo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Trinseo and Mexichem’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trinseo $4.45 billion 0.74 $328.30 million $8.13 9.38
Mexichem $5.83 billion 1.08 $194.30 million N/A N/A

Trinseo has higher earnings, but lower revenue than Mexichem.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 1.9%. Mexichem pays an annual dividend of $0.12 per share and has a dividend yield of 2.0%. Trinseo pays out 17.7% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Trinseo 7.42% 59.08% 13.86%
Mexichem 3.33% 9.47% 3.98%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Trinseo and Mexichem, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 4 0 2.67
Mexichem 0 0 0 0 N/A

Trinseo presently has a consensus target price of $88.60, suggesting a potential upside of 16.12%. Given Trinseo’s higher possible upside, equities analysts clearly believe Trinseo is more favorable than Mexichem.

Volatility and Risk

Trinseo has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Mexichem has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Summary

Trinseo beats Mexichem on 9 of the 13 factors compared between the two stocks.

About Trinseo

Trinseo S.A., a materials company, manufactures and markets synthetic rubber, latex binders, and plastic products in Europe, the United States, the Asia Pacific, and internationally. The company operates through Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks, and Americas Styrenics segments. The Latex Binders segment offers styrene-butadiene, styrene-acrylate, vinylidene chloride, and butadiene-methacrylate latex products for the commercial and niche carpet markets, as well as performance latex products for the adhesive, building and construction, and technical textile paper markets. The Synthetic Rubber segment provides styrene-butadiene rubber, emulsion styrene-butadiene rubber, nickel polybutadiene rubber, and neodymium polybutadiene rubber for use in tires, modifiers, and technical rubber products. The Performance Plastics segment offers engineered compounds and blend products for the automotive, consumer electronics, medical, electrical, and lighting markets. The Basic Plastics segment provides polystyrene, polycarbonate, acrylonitrile-butadiene-styrene, and styrene-acrylonitrile for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials. The Feedstocks segment offers styrene monomer, a basic building block of plastics. The Americas Styrenics segment provides styrene and polystyrene, as well as general purpose polystyrenes, high heat, high impact resin, and STYRON A-TECH polystyrene products. The company's products are also used in carpet and artificial turf backing, coated and specialty paper, and other markets. Trinseo S.A. was founded in 2010 and is headquartered in Berwyn, Pennsylvania.

About Mexichem

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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