Head to Head Contrast: Venator Materials (VNTR) versus Valhi (VHI)
Venator Materials (NYSE: VNTR) and Valhi (NYSE:VHI) are both mid-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
This table compares Venator Materials and Valhi’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
23.2% of Venator Materials shares are owned by institutional investors. Comparatively, 2.1% of Valhi shares are owned by institutional investors. 0.0% of Valhi shares are owned by company 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 current recommendations and price targets for Venator Materials and Valhi, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Venator Materials currently has a consensus target price of $27.46, indicating a potential upside of 23.87%. Valhi has a consensus target price of $5.00, indicating a potential downside of 20.51%. Given Venator Materials’ stronger consensus rating and higher possible upside, equities analysts plainly believe Venator Materials is more favorable than Valhi.
Valhi pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Venator Materials does not pay a dividend. Valhi pays out 34.8% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Venator Materials and Valhi’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Venator Materials||$2.31 billion||1.02||-$87.00 million||$0.55||40.31|
|Valhi||$1.57 billion||1.36||-$15.90 million||$0.23||27.35|
Valhi has lower revenue, but higher earnings than Venator Materials. Valhi is trading at a lower price-to-earnings ratio than Venator Materials, indicating that it is currently the more affordable of the two stocks.
Venator Materials beats Valhi on 8 of the 14 factors compared between the two stocks.
Venator Materials Company Profile
Venator Materials PLC is a manufacturer and marketer of chemical products. The Company is engaged in manufacturing titanium dioxide (TiO2), functional additives, color pigments, timber treatment and water treatment products. It operates through two segments: Titanium Dioxide and Performance Additives. The Company derives TiO2 is from titanium bearing ores and is a white inert pigment that provides whiteness, opacity and brightness to thousands of everyday items, including coatings, plastics, paper, printing inks, fibers, food and personal care products. Functional additives are barium and zinc based inorganic chemicals. It also manufactures zinc and barium functional additives. It also manufactures wood protection chemicals used primarily in residential and commercial applications. The Company operates 27 manufacturing facilities in 10 countries with a total nameplate production capacity of approximately 1.3 million metric tons per year.
Valhi Company Profile
Valhi, Inc. is a holding company. The Company operates through four segments: Chemicals, Component Products, Waste Management, and Real Estate Management and Development. The Company operates through its subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc. (Kronos), CompX International Inc. (CompX) and Waste Control Specialists LLC (WCS). The Chemicals segment operates through Kronos. Kronos is a producer and marketer of titanium dioxide pigments (TiO2). The Component Products segment operates through CompX. CompX is a manufacturer of security products used in the recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare and a range of other industries. The Waste Management segment operates through WCS. The Real Estate Management and Development segment operates through Basic Management, Inc. (BMI) and The LandWell Company (LandWell).
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