Analyzing Olin Corporation (OLN) and Trecora Resources (TREC)
Olin Corporation (NYSE: OLN) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Earnings and Valuation
This table compares Olin Corporation and Trecora Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Olin Corporation||$5.93 billion||1.02||$842.90 million||$0.25||145.60|
|Trecora Resources||$229.00 million||1.41||$26.34 million||$0.09||147.79|
Olin Corporation has higher revenue and earnings than Trecora Resources. Olin Corporation is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Olin Corporation and Trecora Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Olin Corporation currently has a consensus price target of $37.43, suggesting a potential upside of 2.83%. Trecora Resources has a consensus price target of $15.67, suggesting a potential upside of 17.79%. Given Trecora Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Trecora Resources is more favorable than Olin Corporation.
Risk & Volatility
Olin Corporation has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
This table compares Olin Corporation and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
92.6% of Olin Corporation shares are owned by institutional investors. Comparatively, 41.6% of Trecora Resources shares are owned by institutional investors. 2.9% of Olin Corporation shares are owned by insiders. Comparatively, 6.6% of Trecora Resources 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.
Olin Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Trecora Resources does not pay a dividend. Olin Corporation pays out 320.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Trecora Resources beats Olin Corporation on 9 of the 16 factors compared between the two stocks.
About Olin Corporation
Olin Corporation is a manufacturer and distributor of chemical products, and ammunition. The Company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a range of epoxy materials, including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products, such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
About Trecora Resources
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
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