Enlightify (NYSE:ENFY – Get Free Report) and Brenntag (OTCMKTS:BNTGY – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Volatility and Risk
Enlightify has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Brenntag has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Profitability
This table compares Enlightify and Brenntag’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enlightify | -22.98% | -18.78% | -11.03% |
| Brenntag | 2.62% | 9.19% | 3.69% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enlightify | 1 | 0 | 0 | 0 | 1.00 |
| Brenntag | 2 | 6 | 0 | 0 | 1.75 |
Brenntag has a consensus target price of $12.80, indicating a potential upside of 17.54%. Given Brenntag’s stronger consensus rating and higher probable upside, analysts clearly believe Brenntag is more favorable than Enlightify.
Valuation and Earnings
This table compares Enlightify and Brenntag”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enlightify | $79.21 million | 0.02 | -$28.41 million | ($1.05) | -0.09 |
| Brenntag | $17.57 billion | 0.45 | $580.22 million | $0.64 | 17.02 |
Brenntag has higher revenue and earnings than Enlightify. Enlightify is trading at a lower price-to-earnings ratio than Brenntag, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.1% of Enlightify shares are owned by institutional investors. 14.0% of Enlightify shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Brenntag beats Enlightify on 10 of the 13 factors compared between the two stocks.
About Enlightify
Enlightify, Inc. engages in the research, development, production, and sale of various types of fertilizers and agricultural products. It operates through the following segments: Jinong, Gufeng, and Yuxing. The Jinong segment includes fertilizer products, with focus on humic acid-based compound fertilizer. The Gufeng segment refers to the compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer. The Yuxing segment develops and produces agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. The company was founded by Tao Li on February 6, 1987 and is headquartered in Xi’an, China.
About Brenntag
Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.
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