Comparing KMG Chemicals (KMG) & OCI Partners (OCIP)
KMG Chemicals (NYSE: KMG) and OCI Partners (NYSE:OCIP) are both small-cap specialty chemicals – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Risk and Volatility
KMG Chemicals has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, OCI Partners has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
This table compares KMG Chemicals and OCI Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KMG Chemicals||$333.44 million||2.74||$23.63 million||$1.91||31.13|
|OCI Partners||$258.23 million||3.07||-$50.55 million||($0.06)||-151.67|
KMG Chemicals has higher revenue and earnings than OCI Partners. OCI Partners is trading at a lower price-to-earnings ratio than KMG Chemicals, indicating that it is currently the more affordable of the two stocks.
KMG Chemicals pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. OCI Partners pays an annual dividend of $0.32 per share and has a dividend yield of 3.5%. KMG Chemicals pays out 6.3% of its earnings in the form of a dividend. OCI Partners pays out -533.3% 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. OCI Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
70.8% of KMG Chemicals shares are held by institutional investors. Comparatively, 15.1% of OCI Partners shares are held by institutional investors. 6.1% of KMG Chemicals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for KMG Chemicals and OCI Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KMG Chemicals presently has a consensus price target of $71.50, suggesting a potential upside of 20.25%. OCI Partners has a consensus price target of $7.00, suggesting a potential downside of 23.08%. Given KMG Chemicals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe KMG Chemicals is more favorable than OCI Partners.
This table compares KMG Chemicals and OCI Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
KMG Chemicals beats OCI Partners on 12 of the 16 factors compared between the two stocks.
KMG Chemicals Company Profile
KMG Chemicals, Inc. manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals. The Company operates through its subsidiaries, KMG Electronic Chemicals, Inc. (KMG EC), KMG-Bernuth, Inc. (KMG Bernuth) and KMG Val-Tex, LLC (Val-Tex). The Company’s Electronic chemicals business sells high purity and ultra-purity wet process chemicals primarily to the semiconductor industry. The Company’s Other chemicals segment includes its industrial lubricants business and wood treating chemicals business. The Company’s products sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals.
OCI Partners Company Profile
OCI Partners LP owns and operates an integrated methanol and ammonia production facility that is located on the Texas Gulf Coast near Beaumont. The Company has an annual methanol production capacity of approximately 912,500 metric tons and an annual ammonia production capacity of approximately 331,000 metric tons. It purchases natural gas from third parties and processes the natural gas into synthesis gas, which it then further processes in the production of methanol and ammonia. It stores and sells the processed methanol and ammonia to industrial and commercial customers for further processing or distribution. Its methanol production unit comprises Foster-Wheeler-designed twin steam methane reformers for synthesis gas production, over two Lurgi-designed parallel low-pressure, water-cooled reactors and approximately four distillation columns. The Haldor-Topsoe-designed ammonia synthesis loop at its facility processes hydrogen produced by methanol production process.
Receive News & Ratings for KMG Chemicals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KMG Chemicals and related companies with MarketBeat.com's FREE daily email newsletter.