Axalta Coating Systems (NYSE:AXTA – Get Free Report) and Ecovyst (NYSE:ECVT – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Axalta Coating Systems and Ecovyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axalta Coating Systems | 1 | 8 | 5 | 0 | 2.29 |
| Ecovyst | 1 | 1 | 4 | 1 | 2.71 |
Axalta Coating Systems presently has a consensus target price of $38.45, indicating a potential upside of 5.54%. Ecovyst has a consensus target price of $14.62, indicating a potential upside of 39.80%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts plainly believe Ecovyst is more favorable than Axalta Coating Systems.
Insider & Institutional Ownership
98.3% of Axalta Coating Systems shares are held by institutional investors. Comparatively, 86.7% of Ecovyst shares are held by institutional investors. 0.5% of Axalta Coating Systems shares are held by company insiders. Comparatively, 1.8% of Ecovyst 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.
Risk & Volatility
Axalta Coating Systems has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Profitability
This table compares Axalta Coating Systems and Ecovyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axalta Coating Systems | 6.46% | 21.28% | 7.02% |
| Ecovyst | 3.72% | 14.38% | 6.38% |
Valuation and Earnings
This table compares Axalta Coating Systems and Ecovyst”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axalta Coating Systems | $5.12 billion | 1.52 | $378.00 million | $1.55 | 23.51 |
| Ecovyst | $723.50 million | 1.57 | -$71.13 million | ($0.53) | -19.74 |
Axalta Coating Systems has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Axalta Coating Systems beats Ecovyst on 9 of the 15 factors compared between the two stocks.
About Axalta Coating Systems
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.
About Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
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