Critical Survey: Ferro Corporation (FOE) versus Huntsman Corporation (HUN)
Ferro Corporation (NYSE: FOE) and Huntsman Corporation (NYSE:HUN) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Ferro Corporation does not pay a dividend. Huntsman Corporation pays out 29.1% of its earnings in the form of a dividend.
Volatility & Risk
Ferro Corporation has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Huntsman Corporation has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Ferro Corporation and Huntsman Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ferro Corporation presently has a consensus price target of $23.00, suggesting a potential downside of 4.01%. Huntsman Corporation has a consensus price target of $31.33, suggesting a potential upside of 1.67%. Given Huntsman Corporation’s higher possible upside, analysts plainly believe Huntsman Corporation is more favorable than Ferro Corporation.
Institutional & Insider Ownership
98.2% of Ferro Corporation shares are held by institutional investors. Comparatively, 77.4% of Huntsman Corporation shares are held by institutional investors. 2.0% of Ferro Corporation shares are held by insiders. Comparatively, 19.0% of Huntsman Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Ferro Corporation and Huntsman Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Ferro Corporation and Huntsman Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Ferro Corporation||$1.15 billion||1.75||-$20.81 million||$0.53||45.21|
|Huntsman Corporation||$9.66 billion||0.77||$326.00 million||$1.72||17.92|
Huntsman Corporation has higher revenue and earnings than Ferro Corporation. Huntsman Corporation is trading at a lower price-to-earnings ratio than Ferro Corporation, indicating that it is currently the more affordable of the two stocks.
Huntsman Corporation beats Ferro Corporation on 9 of the 16 factors compared between the two stocks.
About Ferro Corporation
Ferro Corporation (Ferro) produces specialty materials that are sold to a range of manufacturers. The Company’s segments include Performance Coatings; Performance Colors and Glass, and Pigments, Powders and Oxides. Its Performance Coatings segment includes Tile Coating Systems and Porcelain Enamel. Its manufacturers make products for various end-use markets. The Company’s products fall into two general categories: functional coatings, which perform specific functions in the manufacturing processes and end products of its customers, and color solutions, which provide aesthetic and performance characteristics to its customers’ products. Its products are used in a range of product applications in markets, including appliances, automobiles, building and renovation, electronics, household furnishings, industrial products and packaging.
About Huntsman Corporation
Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.
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