RPM International (NYSE:RPM) versus Elementis (OTCMKTS:ELMTY) Financial Review

Elementis (OTCMKTS:ELMTY) and RPM International (NYSE:RPM) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Institutional & Insider Ownership

81.0% of RPM International shares are held by institutional investors. 1.6% of RPM International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Elementis and RPM International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elementis	$738.30 million	1.61	-$47.80 million	N/A	N/A
RPM International	$7.37 billion	1.83	$688.69 million	$5.35	19.67

RPM International has higher revenue and earnings than Elementis.

Dividends

Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.1%. RPM International pays out 40.4% of its earnings in the form of a dividend. RPM International has increased its dividend for 51 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Elementis has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, RPM International has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Elementis and RPM International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elementis	0	0	0	0	0.00
RPM International	0	7	6	0	2.46

RPM International has a consensus price target of $130.18, indicating a potential upside of 23.73%. Given RPM International’s stronger consensus rating and higher possible upside, analysts clearly believe RPM International is more favorable than Elementis.

Profitability

This table compares Elementis and RPM International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elementis	N/A	N/A	N/A
RPM International	9.16%	24.22%	9.46%

Summary

RPM International beats Elementis on 14 of the 15 factors compared between the two stocks.

About Elementis

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.