Icahn Enterprises L.P. (NASDAQ: IEP) and E I Du Pont De Nemours And (NYSE:DD) are both mid-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
This is a summary of current recommendations for Icahn Enterprises L.P. and E I Du Pont De Nemours And, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Icahn Enterprises L.P.||0||0||1||0||3.00|
|E I Du Pont De Nemours And||0||4||6||0||2.60|
Icahn Enterprises L.P. currently has a consensus target price of $61.00, suggesting a potential upside of 10.11%. E I Du Pont De Nemours And has a consensus target price of $80.30, suggesting a potential downside of 4.33%. Given Icahn Enterprises L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Icahn Enterprises L.P. is more favorable than E I Du Pont De Nemours And.
Volatility and Risk
Icahn Enterprises L.P. has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, E I Du Pont De Nemours And has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.
This table compares Icahn Enterprises L.P. and E I Du Pont De Nemours And’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Icahn Enterprises L.P.||6.35%||15.51%||4.18%|
|E I Du Pont De Nemours And||11.57%||29.17%||8.10%|
Insider & Institutional Ownership
96.8% of Icahn Enterprises L.P. shares are held by institutional investors. Comparatively, 71.2% of E I Du Pont De Nemours And shares are held by institutional investors. 90.1% of Icahn Enterprises L.P. shares are held by insiders. Comparatively, 0.3% of E I Du Pont De Nemours And shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Icahn Enterprises L.P. pays an annual dividend of $3.00 per share and has a dividend yield of 5.4%. E I Du Pont De Nemours And pays an annual dividend of $1.52 per share and has a dividend yield of 1.8%. Icahn Enterprises L.P. pays out 38.2% of its earnings in the form of a dividend. E I Du Pont De Nemours And pays out 59.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Icahn Enterprises L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Icahn Enterprises L.P. and E I Du Pont De Nemours And’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Icahn Enterprises L.P.||$18.67 billion||N/A||$1.85 billion||$7.85||7.06|
|E I Du Pont De Nemours And||$25.30 billion||2.88||$5.32 billion||$2.56||32.79|
E I Du Pont De Nemours And has higher revenue and earnings than Icahn Enterprises L.P.. Icahn Enterprises L.P. is trading at a lower price-to-earnings ratio than E I Du Pont De Nemours And, indicating that it is currently the more affordable of the two stocks.
E I Du Pont De Nemours And beats Icahn Enterprises L.P. on 8 of the 15 factors compared between the two stocks.
About Icahn Enterprises L.P.
Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).
About E I Du Pont De Nemours And
E. I. du Pont de Nemours and Company is a science and technology-based company. It operates through six segments: Agriculture, Electronics & Communications (E&C), Industrial Biosciences, Nutrition & Health, Performance Materials and Protection Solutions. Its Agriculture segment includes products, such as corn hybrids and soybean varieties, herbicides, fungicides and insecticides. Its E&C segment includes products, such as printing and packaging materials, photopolymers and electronic materials. Its Industrial Biosciences segment includes products, such as enzymes, bio-based materials and process technologies. Its Nutrition & Health segment includes products, such as probiotics, cultures, emulsifiers, natural sweeteners and soy-based food ingredients. Its Performance Materials segment includes products, such as engineering polymers, packaging and industrial polymers, films and elastomers. Its Protection Solutions segment includes products, such as nonwovens, aramids and solid surfaces.
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