Cabot Corporation (NYSE: CBT) and Sigma-Aldrich Corporation (NASDAQ:SIAL) are both specialty chemicals – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Earnings and Valuation

This table compares Cabot Corporation and Sigma-Aldrich Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cabot Corporation $2.72 billion 1.46 $149.00 million $2.34 27.35
Sigma-Aldrich Corporation N/A N/A N/A $4.08 N/A

Cabot Corporation has higher revenue and earnings than Sigma-Aldrich Corporation. Sigma-Aldrich Corporation is trading at a lower price-to-earnings ratio than Cabot Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Cabot Corporation and Sigma-Aldrich Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Corporation 0 3 4 0 2.57
Sigma-Aldrich Corporation 0 0 0 0 N/A

Cabot Corporation currently has a consensus price target of $61.33, indicating a potential downside of 4.15%.

Dividends

Cabot Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.0%. Sigma-Aldrich Corporation does not pay a dividend. Cabot Corporation pays out 53.8% of its earnings in the form of a dividend. Cabot Corporation has raised its dividend for 41 consecutive years and Sigma-Aldrich Corporation has raised its dividend for 5 consecutive years.

Insider & Institutional Ownership

84.3% of Cabot Corporation shares are held by institutional investors. 2.5% of Cabot Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Cabot Corporation and Sigma-Aldrich Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Corporation 8.87% 15.11% 6.96%
Sigma-Aldrich Corporation 16.22% 13.72% 10.47%

Summary

Cabot Corporation beats Sigma-Aldrich Corporation on 7 of the 11 factors compared between the two stocks.

About Cabot Corporation

Cabot Corporation is a global specialty chemicals and performance materials company. The Company operates through four business segments: reinforcement materials, performance chemicals, purification solutions and specialty fluids. Reinforcement materials’ rubber grade carbon blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Its rubber blacks products are used in tires and industrial products. Performance Chemicals consists of two businesses: specialty carbons and formulations business, and metal oxides business. Purification Solutions’ activated carbon products are used for the purification of water, air and pharmaceuticals, among others, as either a colorant or a decolorizing agent in the production of food and beverage applications. Its specialty fluids segment produces and markets cesium formate as a drilling and completion fluid for use in high pressure and high temperature oil and gas well construction.

About Sigma-Aldrich Corporation

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

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