Tronox (OTCMKTS: TROX) and Ashland Global Holdings (NYSE:ASH) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitabiliy and analyst recommendations.
This is a summary of current ratings and price targets for Tronox and Ashland Global Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashland Global Holdings||0||2||2||0||2.50|
Ashland Global Holdings has a consensus price target of $82.75, indicating a potential upside of 32.85%.
Ashland Global Holdings pays an annual dividend of $0.90 per share and has a dividend yield of 1.4%. Tronox does not pay a dividend. Ashland Global Holdings pays out -25.4% of its earnings in the form of a dividend. Ashland Global Holdings has raised its dividend for 7 consecutive years.
This table compares Tronox and Ashland Global Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashland Global Holdings||-4.71%||10.62%||3.70%|
Institutional & Insider Ownership
90.1% of Ashland Global Holdings shares are owned by institutional investors. 1.3% of Ashland Global Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Tronox and Ashland Global Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ashland Global Holdings||$5.06 billion||0.76||$686.00 million||($3.54)||-17.60|
Ashland Global Holdings has higher revenue and earnings than Tronox.
Ashland Global Holdings beats Tronox on 9 of the 10 factors compared between the two stocks.
Tronox Limited is engaged in production and marketing of titanium bearing mineral sands and titanium dioxide pigment (TiO2). The Company’s TiO2 products are critical components of everyday applications, such as coatings, plastics, paper and other applications. The Company’s mineral sands business consists primarily of two product streams: titanium feedstock and zircon. The Company operates in three segments: mineral sands, pigment and corporate and other. The corporate and other include its electrolytic manufacturing business. It has operations in North America, Europe, South Africa and the Asia-Pacific region. The Company operates three TiO2 facilities at the locations in Hamilton, Mississippi, Botlek, The Netherlands, and Kwinana, Western Australia, representing approximately 465,000 tons of annual TiO2 production capacity.
About Ashland Global Holdings
Ashland Inc. is engaged in specialty chemicals, and through Valvoline, is a consumer-branded lubricant supplier. The Company operates in three segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. Its Specialty Ingredients segment is engaged in providing cellulose ethers, vinyl pyrrolidones and biofunctionals, and consists of two divisions: Consumer Specialties and Industrial Specialties. Its Performance Materials segment is engaged in providing unsaturated polyester resins and vinyl ester resins, and consists of two divisions: Composites and Intermediates/Solvents. Its Valvoline segment is engaged in producing and distributing automotive, commercial and industrial lubricants, and automotive chemicals. Its chemistry is used in various markets and applications, including architectural coatings, adhesives, automotive, construction, energy and pharmaceutical.
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