Huntsman (NYSE: HUN) and Basf (OTCMKTS:BASFY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Huntsman pays an annual dividend of $0.65 per share and has a dividend yield of 2.0%. Basf pays an annual dividend of $0.66 per share and has a dividend yield of 2.6%. Huntsman pays out 26.2% of its earnings in the form of a dividend. Basf pays out 36.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Huntsman and Basf’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Risk and Volatility
Huntsman has a beta of 2.73, indicating that its share price is 173% more volatile than the S&P 500. Comparatively, Basf has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Insider and Institutional Ownership
79.4% of Huntsman shares are held by institutional investors. Comparatively, 0.5% of Basf shares are held by institutional investors. 19.0% of Huntsman shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Huntsman and Basf’s revenue, earnings per share and valuation.
||Earnings Per Share
Basf has higher revenue and earnings than Huntsman. Huntsman is trading at a lower price-to-earnings ratio than Basf, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Huntsman and Basf, as provided by MarketBeat.com.
||Strong Buy Ratings
Huntsman presently has a consensus target price of $36.96, suggesting a potential upside of 11.09%. Given Huntsman’s stronger consensus rating and higher probable upside, research analysts clearly believe Huntsman is more favorable than Basf.
Huntsman beats Basf on 9 of the 16 factors compared between the two stocks.
Huntsman Corporation, through its subsidiary, Huntsman International LLC, manufactures and sells differentiated organic chemical products worldwide. The company operates in four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines, maleic anhydrides, surfactants, linear alkyl-benzene, ethylene glycol, ethylene oxide, olefins, and technology licenses. The Advanced Materials segment offers epoxy, acrylic, and polyurethane-based polymers formulations; high performance thermoset resins and curing agents; and base liquid and solid resins. The Textile Effects segment provides textile chemicals, dyes, and inks. The company's products are used in various applications, including adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, electronics, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.
BASF SE operates as a chemical company worldwide. It operates through five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The Chemicals segment offers solvents, plasticizers, monomers, and glues, as well as raw materials for detergents, plastics, textile fibers, paints and coatings, crop protection products, and medicines. The Performance Products segment provides dispersions and pigments, care chemicals, nutrition and health products, and performance chemicals that are used in pharmaceuticals, personal care products, and cosmetics, as well as hygiene and household products; and other products for enhancing processes in the paper industry and water treatment, as well as in oil, gas, and ore extraction. The Functional Materials & Solutions segment offers catalysts, battery materials, engineering plastics, polyurethane systems, automotive coatings, surface treatment solutions, and concrete admixtures; and tile adhesives and decorative paints for the automotive, electrical, chemical, and construction industries, as well as for household, and sports and leisure applications. The Agricultural Solutions segment provides fungicides, herbicides, and insecticides, as well as functional crop care products. The Oil & Gas segment explores for and produces oil and gas in Europe, North Africa, Russia, South America, and the Middle East. It also produces ammonia; and transports natural gas in Europe. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.
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