Valhi (NYSE:VHI) and 5N Plus (OTCMKTS:FPLSF) Financial Survey

5N Plus (OTCMKTS:FPLSF) and Valhi (NYSE:VHI) are both small-cap materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares 5N Plus and Valhi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
5N Plus	14.14%	26.36%	11.28%
Valhi	-2.36%	-2.77%	-1.45%

Insider and Institutional Ownership

0.1% of 5N Plus shares are held by institutional investors. Comparatively, 3.8% of Valhi shares are held by institutional investors. 3.9% of 5N Plus shares are held by company insiders. Comparatively, 0.2% of Valhi shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

5N Plus has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Valhi has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares 5N Plus and Valhi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
5N Plus	$391.06 million	4.23	$50.57 million	$0.70	26.29
Valhi	$2.08 billion	0.24	-$57.60 million	($1.79)	-10.02

5N Plus has higher earnings, but lower revenue than Valhi. Valhi is trading at a lower price-to-earnings ratio than 5N Plus, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for 5N Plus and Valhi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
5N Plus	0	1	2	1	3.00
Valhi	1	0	0	0	1.00

Summary

5N Plus beats Valhi on 12 of the 14 factors compared between the two stocks.

About 5N Plus

5N Plus Inc. produces and sells specialty metals and chemicals in North America, Europe, and Asia. It operates through two segments, Specialty Semiconductors and Performance Materials. The company offers semiconductor compounds, semiconductor wafers, metals, epitaxial semiconductor substrates, and solar cells. It also provides active pharmaceutical ingredients, animal feed additives, specialized chemicals, commercial grade metals, alloys, engineered powders, and recycling services. The company serves renewable energy, security, space, pharmaceutical, medical imaging, manufacturing, electronic, consumer, and industrial application markets. 5N Plus Inc. is headquartered in Montreal, Canada.

About Valhi

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.