Analyzing A Schulman (SHLM) and Rogers (ROG)

A Schulman (NASDAQ: SHLM) and Rogers (NYSE:ROG) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility and Risk

A Schulman has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Rogers has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Dividends

A Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 1.8%. Rogers does not pay a dividend. A Schulman pays out 46.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

87.6% of A Schulman shares are held by institutional investors. Comparatively, 93.5% of Rogers shares are held by institutional investors. 4.1% of A Schulman shares are held by insiders. Comparatively, 1.5% of Rogers 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.

Profitability

This table compares A Schulman and Rogers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A Schulman 1.74% 20.83% 2.39%
Rogers 9.56% 13.71% 9.34%

Earnings & Valuation

This table compares A Schulman and Rogers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A Schulman $2.46 billion 0.53 $33.02 million $1.75 25.43
Rogers $821.04 million 2.49 $80.45 million $5.76 19.35

Rogers has lower revenue, but higher earnings than A Schulman. Rogers is trading at a lower price-to-earnings ratio than A Schulman, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for A Schulman and Rogers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A Schulman 0 3 0 0 2.00
Rogers 0 0 2 0 3.00

A Schulman presently has a consensus target price of $37.00, indicating a potential downside of 16.85%. Rogers has a consensus target price of $165.00, indicating a potential upside of 48.04%. Given Rogers’ stronger consensus rating and higher probable upside, analysts clearly believe Rogers is more favorable than A Schulman.

Summary

Rogers beats A Schulman on 11 of the 16 factors compared between the two stocks.

About A Schulman

A. Schulman, Inc. manufactures and supplies plastic compounds and resins. It offers custom performance colors, including standard and customized colors, organic and inorganic pigments, high chroma colors in translucent or opaque formats, and special effects. The company also provides engineered composites, such as bulk molding compounds, sheet molding compounds, and thick molding compounds, as well as high performance engineered structural composite solutions for original equipment manufacturers and custom molders. In addition, it offers concentrates to enhance the performance, appearance, and processing of plastics for intended applications; additive solutions; and application solutions that minimize the use of plastics, or incorporate the use of recycled plastics or renewable-based polymers, as well as provides films for agriculture, packaging, and personal care and hygiene applications. Further, the company offers polymer solutions, which provide structural integrity; multi-component blends that include polyolefins, nylons, polyesters and elastomers, and others; and formulating know-how with fiber reinforcements, such as glass and carbon, nano-reinforcements, flame retardants, impact modifiers, and UV stabilization. Additionally, it offers size reduction services; specialty powders for rotational molding, oil and gas additives, and sports and leisure products; jet milling services used for products requiring fine particle size; and cryogenic milling services. The company also buys, repackages, and resells polymers for processing types, such as injection molding, blow molding, thermoforming, and film and sheet extruding. It serves packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, sports, home, and leisure markets in Europe, the Middle East, Africa, the United States, Canada, Latin America, and the Asia Pacific. The company was founded in 1928 and is headquartered in Fairlawn, Ohio.

About Rogers

Rogers Corporation designs, develops, manufactures, and sells engineered materials and components worldwide. The company's Advanced Connectivity Solutions segment offers circuit materials and solutions for connectivity applications in wireless communications infrastructure, automotive, connected devices, wired infrastructure, consumer electronics, and aerospace/defense. Its Elastomeric Material Solutions segment provides elastomeric material solutions for critical cushioning, sealing, impact protection, and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, mass transportation, construction, and printing applications. The company's Power Electronics Solutions segment offers ceramic substrate materials for power module applications, laminated bus bars for power inverter and high power interconnect applications, and micro-channel coolers. Its Other segment provides elastomeric components for applications in ground transportation, office equipment, consumer, and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. The company also manufactures and sells polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes, and specialty products for the industrial, aerospace, automotive, and electronics markets. Rogers Corporation was founded in 1832 and is headquartered in Chandler, Arizona.

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