Axiall Corp (NYSE: GGC) and Olin Corporation (NYSE:OLN) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

92.6% of Olin Corporation shares are owned by institutional investors. 2.9% of Olin Corporation shares are owned by company 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.

Earnings & Valuation

This table compares Axiall Corp and Olin Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Axiall Corp N/A N/A N/A N/A N/A
Olin Corporation $5.93 billion 0.90 $842.90 million $0.25 128.92

Olin Corporation has higher revenue and earnings than Axiall Corp.

Analyst Ratings

This is a summary of current ratings for Axiall Corp and Olin Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axiall Corp 0 0 0 0 N/A
Olin Corporation 0 2 4 0 2.67

Olin Corporation has a consensus target price of $32.67, suggesting a potential upside of 1.35%. Given Olin Corporation’s higher possible upside, analysts plainly believe Olin Corporation is more favorable than Axiall Corp.

Profitability

This table compares Axiall Corp and Olin Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axiall Corp -3.52% -7.36% -2.47%
Olin Corporation 0.72% 5.80% 1.51%

Dividends

Olin Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Axiall Corp 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.

Summary

Olin Corporation beats Axiall Corp on 9 of the 10 factors compared between the two stocks.

About Axiall Corp

Axiall Corporation (Axiall) is a manufacturer and international marketer of chemicals and building products. The Company operates through two segments: chlorovinyls and building products. Its products include chlorine, caustic soda, vinyl chloride monomer, siding and exterior accessories, and pipe and pipe fittings, among others. The Company’s chlorovinyls segment produces a chain of products, including chlor-alkali and derivative products, such as vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) (EDC), chlorinated solvents, calcium hypochlorite, hydrochloric acid (HCL) and phosgene derivatives, and compound products, such as vinyl compounds and compound additives and plasticizers. The Company’s building products segment consists of over two primary product groups: window and door profiles and trim, moldings and deck products, and outdoor building products, which includes siding and exterior accessories, pipe and pipe fittings.

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.

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