Analyzing Quaker Chemical Corporation (KWR) and Olin Corporation (OLN)
Quaker Chemical Corporation (NYSE: KWR) and Olin Corporation (NYSE:OLN) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
This table compares Quaker Chemical Corporation and Olin Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Quaker Chemical Corporation||5.93%||15.43%||9.20%|
Valuation and Earnings
This table compares Quaker Chemical Corporation and Olin Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Quaker Chemical Corporation||$746.66 million||2.78||$61.40 million||$3.55||44.01|
|Olin Corporation||$5.55 billion||1.10||-$3.90 million||$0.45||81.20|
Quaker Chemical Corporation has higher revenue, but lower earnings than Olin Corporation. Quaker Chemical Corporation is trading at a lower price-to-earnings ratio than Olin Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Quaker Chemical Corporation has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Olin Corporation has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Quaker Chemical Corporation pays an annual dividend of $1.42 per share and has a dividend yield of 0.9%. Olin Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Quaker Chemical Corporation pays out 40.0% of its earnings in the form of a dividend. Olin Corporation pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Quaker Chemical Corporation has raised its dividend for 7 consecutive years.
This is a breakdown of recent recommendations and price targets for Quaker Chemical Corporation and Olin Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Quaker Chemical Corporation||0||3||0||0||2.00|
Quaker Chemical Corporation presently has a consensus target price of $159.00, indicating a potential upside of 1.77%. Olin Corporation has a consensus target price of $38.14, indicating a potential upside of 4.39%. Given Olin Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Olin Corporation is more favorable than Quaker Chemical Corporation.
Institutional and Insider Ownership
82.9% of Quaker Chemical Corporation shares are owned by institutional investors. Comparatively, 92.9% of Olin Corporation shares are owned by institutional investors. 3.6% of Quaker Chemical Corporation shares are owned by company insiders. Comparatively, 2.9% of Olin Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Quaker Chemical Corporation beats Olin Corporation on 9 of the 17 factors compared between the two stocks.
Quaker Chemical Corporation Company Profile
Quaker Chemical Corporation is a provider of process fluids, chemical specialties, and technical expertise to a range of industries, including steel, aluminum, mining, aerospace, tube and pipe, cans and others. The Company’s segments include North America, Europe, Middle East and Africa (EMEA), Asia/Pacific and South America. It develops, produces, and markets a range of formulated chemical specialty products and offers chemical management services. Its products and services include rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts, which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life), and hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment).
Olin Corporation Company Profile
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.
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