OMNOVA Solutions (OMN) & The Competition Critical Review

OMNOVA Solutions (NYSE: OMN) is one of 51 public companies in the “Specialty Chemicals” industry, but how does it contrast to its competitors? We will compare OMNOVA Solutions to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for OMNOVA Solutions and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OMNOVA Solutions 0 1 2 0 2.67
OMNOVA Solutions Competitors 255 1199 1312 32 2.40

OMNOVA Solutions currently has a consensus target price of $12.00, indicating a potential upside of 31.87%. As a group, “Specialty Chemicals” companies have a potential upside of 2.15%. Given OMNOVA Solutions’ stronger consensus rating and higher probable upside, equities research analysts plainly believe OMNOVA Solutions is more favorable than its competitors.

Profitability

This table compares OMNOVA Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OMNOVA Solutions -1.19% 18.52% 2.97%
OMNOVA Solutions Competitors -2.54% 8.91% 4.06%

Valuation and Earnings

This table compares OMNOVA Solutions and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
OMNOVA Solutions $778.50 million $82.20 million -43.33
OMNOVA Solutions Competitors $1.95 billion $301.80 million 16.41

OMNOVA Solutions’ competitors have higher revenue and earnings than OMNOVA Solutions. OMNOVA Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

88.0% of OMNOVA Solutions shares are owned by institutional investors. Comparatively, 70.0% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 4.8% of OMNOVA Solutions shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

OMNOVA Solutions has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, OMNOVA Solutions’ competitors have a beta of 1.58, meaning that their average stock price is 58% more volatile than the S&P 500.

Summary

OMNOVA Solutions beats its competitors on 7 of the 12 factors compared.

About OMNOVA Solutions

OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.

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