Head-To-Head Survey: OCI Partners (OCIP) & Platform Specialty Products Corporation (PAH)

OCI Partners (NYSE: OCIP) and Platform Specialty Products Corporation (NYSE:PAH) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares OCI Partners and Platform Specialty Products Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OCI Partners -5.60% -10.52% -2.53%
Platform Specialty Products Corporation -0.26% 7.15% 2.05%

Earnings and Valuation

This table compares OCI Partners and Platform Specialty Products Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OCI Partners $298.87 million 2.15 $93.85 million ($0.19) -38.95
Platform Specialty Products Corporation $3.64 billion 0.91 $732.30 million ($0.44) -26.11

Platform Specialty Products Corporation has higher revenue and earnings than OCI Partners. OCI Partners is trading at a lower price-to-earnings ratio than Platform Specialty Products Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

15.0% of OCI Partners shares are held by institutional investors. Comparatively, 93.9% of Platform Specialty Products Corporation shares are held by institutional investors. 6.0% of Platform Specialty Products Corporation shares are held by company 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.

Volatility & Risk

OCI Partners has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Platform Specialty Products Corporation has a beta of 3.31, suggesting that its stock price is 231% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for OCI Partners and Platform Specialty Products Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 1 0 0 0 1.00
Platform Specialty Products Corporation 0 3 6 0 2.67

OCI Partners currently has a consensus target price of $7.00, suggesting a potential downside of 5.41%. Platform Specialty Products Corporation has a consensus target price of $13.11, suggesting a potential upside of 14.11%. Given Platform Specialty Products Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Platform Specialty Products Corporation is more favorable than OCI Partners.

Dividends

OCI Partners pays an annual dividend of $0.48 per share and has a dividend yield of 6.5%. Platform Specialty Products Corporation does not pay a dividend. OCI Partners pays out -252.6% of its earnings in the form of a dividend.

Summary

Platform Specialty Products Corporation beats OCI Partners on 11 of the 15 factors compared between the two stocks.

About OCI Partners

OCI Partners LP owns and operates an integrated methanol and ammonia production facility that is located on the Texas Gulf Coast near Beaumont. The Company has an annual methanol production capacity of approximately 912,500 metric tons and an annual ammonia production capacity of approximately 331,000 metric tons. It purchases natural gas from third parties and processes the natural gas into synthesis gas, which it then further processes in the production of methanol and ammonia. It stores and sells the processed methanol and ammonia to industrial and commercial customers for further processing or distribution. Its methanol production unit comprises Foster-Wheeler-designed twin steam methane reformers for synthesis gas production, over two Lurgi-designed parallel low-pressure, water-cooled reactors and approximately four distillation columns. The Haldor-Topsoe-designed ammonia synthesis loop at its facility processes hydrogen produced by methanol production process.

About Platform Specialty Products Corporation

Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers plating products that are used to plate holes; electroless nickel products, which are applied to various metal and plastic surfaces; electronic assembly materials for use in the electronic market and residential boiler systems; final finishes that are used on printed circuit boards; circuit formation products for surface preparation; oxides, which are used in the fabrication of multilayer circuit boards; semiconductor materials and packaging products; and pre-treatment and cleaning solutions. This segment also provides functional conversion coatings that are applied to metals to enhance corrosion resistance and paint adhesion; hard-coated films, which are used for the membrane switch in the touch screen markets; production and drilling fluids used in subsea control systems; solid sheet printing elements for use in flexographic printing and platemaking processes; liquid products to produce printing plates; and printing equipment. The Agricultural Solutions segment offers fungicides and biofungicides to prevent the spread of fungi and other diseases in crops; herbicides to control unwanted plants; insecticides, bioinsecticides, and acaricides; biostimulants and nutrition products; and seed treatment products, which are applied to seed before planting, as well as animal health products, such as honey bee protective miticides and veterinary vaccines. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in West Palm Beach, Florida.

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