Neo Performance Materials (OTCMKTS:NOPMF) and Tronox (NYSE:TROX) Financial Comparison

Neo Performance Materials (OTCMKTS:NOPMF) and Tronox (NYSE:TROX) are both small-cap materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Neo Performance Materials and Tronox”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neo Performance Materials	$478.79 million	1.84	-$9.98 million	($0.01)	-1,916.00
Tronox	$3.06 billion	0.19	-$470.00 million	($3.46)	-1.05

Neo Performance Materials has higher earnings, but lower revenue than Tronox. Neo Performance Materials is trading at a lower price-to-earnings ratio than Tronox, indicating that it is currently the more affordable of the two stocks.

Dividends

Neo Performance Materials pays an annual dividend of $0.29 per share and has a dividend yield of 1.5%. Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 5.5%. Neo Performance Materials pays out -2,900.0% of its earnings in the form of a dividend. Tronox pays out -5.8% 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.

Institutional & Insider Ownership

73.4% of Tronox shares are owned by institutional investors. 2.0% of Tronox shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Neo Performance Materials and Tronox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neo Performance Materials	0.26%	11.52%	6.47%
Tronox	-17.96%	-24.34%	-5.51%

Analyst Ratings

This is a summary of current recommendations for Neo Performance Materials and Tronox, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neo Performance Materials	0	1	2	1	3.00
Tronox	4	4	1	0	1.67

Tronox has a consensus target price of $5.83, indicating a potential upside of 60.48%. Given Tronox’s higher possible upside, analysts plainly believe Tronox is more favorable than Neo Performance Materials.

Summary

Neo Performance Materials beats Tronox on 10 of the 16 factors compared between the two stocks.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.