KMG Chemicals (NYSE: KMG) and Terravia (OTCMKTS:TVIAQ) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for KMG Chemicals and Terravia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KMG Chemicals 0 0 2 0 3.00
Terravia 0 1 0 0 2.00

KMG Chemicals currently has a consensus price target of $70.00, indicating a potential upside of 7.56%. Terravia has a consensus price target of $1.50, indicating a potential upside of 36,485.37%. Given Terravia’s higher possible upside, analysts plainly believe Terravia is more favorable than KMG Chemicals.

Profitability

This table compares KMG Chemicals and Terravia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KMG Chemicals 6.46% 15.41% 6.24%
Terravia -413.48% N/A -61.89%

Dividends

KMG Chemicals pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Terravia does not pay a dividend. KMG Chemicals pays out 6.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares KMG Chemicals and Terravia’s 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 3.00 $23.63 million $1.91 34.07
Terravia $18.48 million 0.02 -$101.55 million ($1.10) 0.00

KMG Chemicals has higher revenue and earnings than Terravia. Terravia is trading at a lower price-to-earnings ratio than KMG Chemicals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

KMG Chemicals has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Terravia has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

56.2% of KMG Chemicals shares are held by institutional investors. Comparatively, 0.3% of Terravia shares are held by institutional investors. 6.1% of KMG Chemicals shares are held by insiders. Comparatively, 10.1% of Terravia shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

KMG Chemicals beats Terravia on 11 of the 15 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.

Terravia Company Profile

Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.

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.