Head-To-Head Survey: Tronox (NYSE:TROX) & Origin Materials (NASDAQ:ORGN)

Tronox (NYSE:TROX) and Origin Materials (NASDAQ:ORGN) are both small-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

73.4% of Tronox shares are owned by institutional investors. Comparatively, 29.9% of Origin Materials shares are owned by institutional investors. 2.0% of Tronox shares are owned by insiders. Comparatively, 2.8% of Origin Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tronox and Origin Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	4	4	2	0	1.80
Origin Materials	1	0	0	0	1.00

Tronox presently has a consensus price target of $6.93, suggesting a potential upside of 57.29%. Given Tronox’s stronger consensus rating and higher possible upside, analysts clearly believe Tronox is more favorable than Origin Materials.

Dividends

Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Origin Materials pays an annual dividend of $0.32 per share and has a dividend yield of 33.7%. Tronox pays out -5.8% of its earnings in the form of a dividend. Origin Materials pays out -0.7% 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.

Profitability

This table compares Tronox and Origin Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tronox	-17.96%	-24.34%	-5.51%
Origin Materials	-1,742.04%	-120.66%	-99.50%

Risk and Volatility

Tronox has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Origin Materials has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares Tronox and Origin Materials”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tronox	$2.90 billion	0.24	-$470.00 million	($3.46)	-1.27
Origin Materials	$13.97 million	0.37	-$249.70 million	($47.83)	-0.02

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

Summary

Tronox beats Origin Materials on 10 of the 16 factors compared between the two stocks.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.

About Origin Materials

Origin Materials, Inc., together with its subsidiaries, operates as a carbon-negative materials company. The company develops a proprietary biomass conversion platform to convert biomass, or plant-based carbon into building block chemicals chloromethylfurfural and hydrothermal carbon, as well as other oils and extractives and other co-products. Origin Materials, Inc. is headquartered in West Sacramento, California.