Head-To-Head Analysis: Clariant (OTCMKTS:CLZNF) & Neo Performance Materials (OTCMKTS:NOPMF)

Neo Performance Materials (OTCMKTS:NOPMF) and Clariant (OTCMKTS:CLZNF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

31.2% of Clariant shares are held by institutional investors. 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.

Analyst Recommendations

This is a summary of current recommendations for Neo Performance Materials and Clariant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neo Performance Materials	0	1	1	0	2.50
Clariant	0	0	0	0	0.00

Earnings and Valuation

This table compares Neo Performance Materials and Clariant”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neo Performance Materials	$475.83 million	1.29	-$12.95 million	($0.17)	-86.46
Clariant	N/A	N/A	N/A	$0.47	21.89

Clariant has lower revenue, but higher earnings than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than Clariant, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Neo Performance Materials and Clariant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neo Performance Materials	-1.30%	3.71%	2.32%
Clariant	N/A	N/A	N/A

Summary

Neo Performance Materials beats Clariant on 5 of the 9 factors compared between the two stocks.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

About Clariant

Clariant AG engages in the development, manufacture, distribution, and sale of specialty chemicals worldwide. The Care Chemicals segment offers specialty chemicals and application solutions for various applications in automotive fluids, aviation, construction chemicals, crop solutions, health care, home care, industrial lubricants, paints and coatings, personal care, and special solvents. The Catalysis segment provides catalyst products for use as ammonia cracking, ammonia, custom catalysts, ethylene and derivatives, fischer-tropsch, fuel cell, fuel upgrading, gas processing, hydrogen, hydrogenation, liquid hydrogen carrier, low-carbon ammonia, low-carbon methanol, methanol, methanol-to-propylene, off-gas treatment, olefins purification, on-purpose propylene, oxidation, polypropylene, refinery stream purification, styrene, zeolite powders, biocatalysis, cellulosic ethanol, cellulosic sugars, low-carbon advanced biofuels, and residue-derived biochemical intermediates. The Adsorbents and Additives segment provides chemicals for oil, gas, mining, and refinery industries; services for oil and gas industries; emulsifiers for explosives, as well as cold-flow additive applications for middle distillates in refineries; mineral-based specialty products for bio- and renewable fuel purification, BTX catalysts, cargo and device protection, cat litter, chemical recycling, civil engineering, clay specialties, detergent additives, edible oil purification, feed additives, foundry additives, kerosene and jet fuel purification, paper additives, PVC stabilizers, and wastewater treatment applications; and flame retardants, performance additives, and advanced surface solutions for use in acid scavengers, antioxidiants, antistatic agents, halogen-free flame retardants, heat stabilizers, hot-melt adhesives, light stabilizers, lubricants, processing aids, processing stabilizers, release agents, slip control agents, and surface modifiers. The company was founded in 1886 and is headquartered in Muttenz, Switzerland.