Head-To-Head Analysis: Huntsman Corporation (HUN) and Versum Materials (VSM)
Huntsman Corporation (NYSE: HUN) and Versum Materials (NYSE:VSM) are both large-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
75.0% of Huntsman Corporation shares are owned by institutional investors. Comparatively, 89.8% of Versum Materials shares are owned by institutional investors. 19.0% of Huntsman Corporation shares are owned by insiders. Comparatively, 0.5% of Versum Materials shares are owned by 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.
This is a summary of current recommendations for Huntsman Corporation and Versum Materials, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Huntsman Corporation presently has a consensus target price of $31.33, suggesting a potential downside of 1.22%. Versum Materials has a consensus target price of $38.11, suggesting a potential downside of 8.28%. Given Huntsman Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Huntsman Corporation is more favorable than Versum Materials.
Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Huntsman Corporation pays out 23.5% of its earnings in the form of a dividend. Versum Materials pays out 11.3% 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.
Earnings & Valuation
This table compares Huntsman Corporation and Versum Materials’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Huntsman Corporation||$9.66 billion||0.79||$326.00 million||$2.13||14.89|
|Versum Materials||$970.10 million||4.66||$212.00 million||$1.77||23.47|
Huntsman Corporation has higher revenue and earnings than Versum Materials. Huntsman Corporation is trading at a lower price-to-earnings ratio than Versum Materials, indicating that it is currently the more affordable of the two stocks.
This table compares Huntsman Corporation and Versum Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Huntsman Corporation beats Versum Materials on 9 of the 14 factors compared between the two stocks.
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.
About Versum Materials
Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.
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