Contrasting Braskem (BAK) & Olin (OLN)
Braskem (NYSE: BAK) and Olin (NYSE:OLN) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Insider & Institutional Ownership
0.6% of Braskem shares are held by institutional investors. Comparatively, 89.7% of Olin shares are held by institutional investors. 0.0% of Braskem shares are held by insiders. Comparatively, 2.9% of Olin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Braskem and Olin, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Olin has a consensus price target of $39.14, suggesting a potential upside of 12.06%. Given Olin’s higher probable upside, analysts clearly believe Olin is more favorable than Braskem.
Braskem pays an annual dividend of $0.75 per share and has a dividend yield of 2.8%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Olin pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Braskem has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Olin has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.
Earnings and Valuation
This table compares Braskem and Olin’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Braskem||$13.74 billion||0.77||-$117.96 million||N/A||N/A|
|Olin||$5.55 billion||1.05||-$3.90 million||$0.46||75.93|
Olin has lower revenue, but higher earnings than Braskem.
This table compares Braskem and Olin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Olin beats Braskem on 8 of the 15 factors compared between the two stocks.
Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.
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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