Balchem (NASDAQ:BCPC) and Chemours (NYSE:CC) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
88.2% of Balchem shares are held by institutional investors. Comparatively, 78.5% of Chemours shares are held by institutional investors. 1.0% of Balchem shares are held by insiders. Comparatively, 1.8% of Chemours shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Balchem and Chemours’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Balchem pays an annual dividend of $0.42 per share and has a dividend yield of 0.5%. Chemours pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Balchem pays out 16.6% of its earnings in the form of a dividend. Chemours pays out 26.2% 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. Balchem has increased its dividend for 7 consecutive years.
This is a summary of recent ratings and price targets for Balchem and Chemours, as provided by MarketBeat.
||Strong Buy Ratings
Balchem currently has a consensus target price of $122.33, suggesting a potential upside of 51.01%. Chemours has a consensus target price of $49.57, suggesting a potential upside of 89.78%. Given Chemours’ higher probable upside, analysts clearly believe Chemours is more favorable than Balchem.
Risk and Volatility
Balchem has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Chemours has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500.
Earnings & Valuation
This table compares Balchem and Chemours’ top-line revenue, earnings per share and valuation.
||Earnings Per Share
Chemours has higher revenue and earnings than Balchem. Chemours is trading at a lower price-to-earnings ratio than Balchem, indicating that it is currently the more affordable of the two stocks.
Chemours beats Balchem on 11 of the 17 factors compared between the two stocks.
Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company's Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include creamer and chocolate systems, dairy replacers, powdered fats, nutritional beverage bases, beverages, juice and dairy bases, ice cream bases and variegates, cereals, grain based snacks, and cereal based ingredients. This segment also offers microencapsulation solutions; and human grade choline nutrients and mineral amino acid chelated products for wellness applications. Its Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The company's Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. It also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company's Industrial Products segment provides choline chloride derivatives for hydraulic fracturing of shale natural gas wells; and methylamines, which are building blocks for the manufacture of choline products, as well as used in industrial applications. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York.
The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Fluoroproducts, and Chemical Solutions. The Titanium Technologies segment manufactures and sells titanium dioxide under the Ti-Pure and BaiMax brands for various applications in architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride window profiles, laminate papers used for furniture and building materials, and coated papers and paperboards used for packaging. The Fluoroproducts segment provides fluoroproducts, including refrigerants, and industrial fluoropolymer resins and derivatives under the Teflon, Viton, Krytox, and Nafion brand names. The Chemical Solutions segment offers industrial and specialty chemicals for gold production, oil and gas, water treatment, electronics, and automotive industries. It also provides sodium cyanide through its mining solutions business; and performance chemicals and intermediates, such as methylamines, glycolic acid, and Vazo free radical initiators. The Chemours Company was founded in 2014 and is headquartered in Wilmington, Delaware.
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