PQ Group (PQG) & OCI Partners (OCIP) Critical Survey

PQ Group (NYSE: OCIP) and OCI Partners (NYSE:OCIP) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Dividends

OCI Partners pays an annual dividend of $1.52 per share and has a dividend yield of 13.3%. PQ Group does not pay a dividend.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PQ Group $1.47 billion 1.63 $57.60 million $0.46 38.70
OCI Partners $343.33 million 2.90 $24.47 million N/A N/A

PQ Group has higher revenue and earnings than OCI Partners.

Profitability

This table compares PQ Group and OCI Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PQ Group 5.00% 5.97% 2.02%
OCI Partners 11.37% 30.77% 6.89%

Institutional and Insider Ownership

69.2% of PQ Group shares are owned by institutional investors. Comparatively, 8.3% of OCI Partners shares are owned by institutional investors. 3.3% of PQ Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for PQ Group and OCI Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PQ Group 0 3 8 0 2.73
OCI Partners 0 1 1 0 2.50

PQ Group presently has a consensus price target of $20.23, indicating a potential upside of 13.64%. OCI Partners has a consensus price target of $15.00, indicating a potential upside of 31.00%. Given OCI Partners’ higher probable upside, analysts clearly believe OCI Partners is more favorable than PQ Group.

Summary

PQ Group beats OCI Partners on 7 of the 13 factors compared between the two stocks.

PQ Group Company Profile

PQ Group Holdings Inc. provides catalysts, specialty materials and chemicals, and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates in two segments, Environmental Catalysts and Services; and Performance Materials and Chemicals. It primarily offers refinery catalysts, emissions control catalysts, and catalyst recycling services for fuels and emission controls use; silica gels for edible oil and beer clarification; precipitated silicas and zeolites for the surface coating, dentifrice, and dishwasher and laundry detergent applications; reflective markings for roadways and airports; and hollow glass beads or microspheres for cement additive, metal finishing, and oil well cement uses. The company also provides catalysts for high-density polyethylene and chemicals syntheses; antiblocks for film packaging; solid and hollow microspheres for composite plastics; silicate precursors for the tire industry; silicate for water treatment and drilling muds; sulfur derivatives for copper mining; and bleaching aids for paper. PQ Group Holdings Inc. was incorporated in 2015 and is headquartered in Malvern, Pennsylvania.

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.

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