OCI Partners (OCIP) vs. Olin (OLN) Financial Comparison

OCI Partners (NYSE: OCIP) and Olin (NYSE:OLN) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for OCI Partners and Olin, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 0 1 1 0 2.50
Olin 0 3 6 0 2.67

OCI Partners currently has a consensus target price of $11.00, indicating a potential downside of 3.72%. Olin has a consensus target price of $36.85, indicating a potential upside of 26.06%. Given Olin’s stronger consensus rating and higher probable upside, analysts plainly believe Olin is more favorable than OCI Partners.

Valuation and Earnings

This table compares OCI Partners and Olin’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OCI Partners $343.33 million 2.90 $24.47 million N/A N/A
Olin $6.27 billion 0.78 $549.50 million $0.81 36.09

Olin has higher revenue and earnings than OCI Partners.

Risk and Volatility

OCI Partners has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Olin has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

8.3% of OCI Partners shares are held by institutional investors. Comparatively, 85.7% of Olin shares are held by institutional investors. 1.7% of Olin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

OCI Partners pays an annual dividend of $1.52 per share and has a dividend yield of 13.3%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Olin pays out 98.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares OCI Partners and Olin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OCI Partners 11.37% 30.77% 6.89%
Olin 8.69% 5.81% 1.60%

Summary

Olin beats OCI Partners on 9 of the 15 factors compared between the two stocks.

OCI Partners Company Profile

OCI Partners LP produces, markets, and distributes methanol and anhydrous ammonia in the United States. The company offers its products to industrial users and commercial traders for further processing or distribution. OCI GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Nederland, Texas. OCI Partners LP is a subsidiary of OCIP Holding, LLC.

Olin Company Profile

Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide. The Epoxy segment provides allyl chloride and epichlorohydrin, as well as acetone, bisphenol, cumene, and phenol for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid and solid epoxy resins that are used in adhesives, paints and coatings, composites, and flooring; and differentiated epoxy resins for use in electrical laminates, paints and coatings, wind blades, electronics, and construction, as well as offers additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is headquartered in Clayton, Missouri.

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