Financial Contrast: Orion Engineered Carbons S.A (OEC) and its Competitors

Orion Engineered Carbons S.A (NYSE: OEC) is one of 51 publicly-traded companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Orion Engineered Carbons S.A to related companies based off the strength of its valuation, institutional ownership, risk, dividends, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

37.2% of Orion Engineered Carbons S.A shares are held by institutional investors. Comparatively, 70.0% of shares of all “Specialty Chemicals” companies are held by institutional investors. 7.1% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Orion Engineered Carbons S.A pays an annual dividend of $0.75 per share and has a dividend yield of 3.5%. Orion Engineered Carbons S.A pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.5% and pay out 27.1% of their earnings in the form of a dividend.

Volatility & Risk

Orion Engineered Carbons S.A has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Orion Engineered Carbons S.A’s peers have a beta of 1.58, suggesting that their average share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Orion Engineered Carbons S.A and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Engineered Carbons S.A 0 1 2 0 2.67
Orion Engineered Carbons S.A Competitors 255 1195 1310 32 2.40

Orion Engineered Carbons S.A currently has a consensus target price of $23.33, suggesting a potential upside of 9.55%. All “Specialty Chemicals” companies have a potential upside of 1.75%. Given Orion Engineered Carbons S.A’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Orion Engineered Carbons S.A is more favorable than its peers.

Profitability

This table compares Orion Engineered Carbons S.A and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Engineered Carbons S.A 4.12% 148.13% 8.81%
Orion Engineered Carbons S.A Competitors -2.54% 8.91% 4.06%

Valuation and Earnings

This table compares Orion Engineered Carbons S.A and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Orion Engineered Carbons S.A $1.36 billion $268.66 million 25.06
Orion Engineered Carbons S.A Competitors $1.95 billion $301.80 million 15.93

Orion Engineered Carbons S.A’s peers have higher revenue and earnings than Orion Engineered Carbons S.A. Orion Engineered Carbons S.A is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.

Summary

Orion Engineered Carbons S.A peers beat Orion Engineered Carbons S.A on 8 of the 15 factors compared.

About Orion Engineered Carbons S.A

Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.

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