OCI Partners (OCIP) vs. OMNOVA Solutions (OMN) Critical Analysis
OCI Partners (NYSE: OCIP) and OMNOVA Solutions (NYSE:OMN) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitabiliy and analyst recommendations.
Earnings & Valuation
This table compares OCI Partners and OMNOVA Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|OCI Partners||$281.18 million||2.63||$80.05 million||($0.19)||-44.74|
|OMNOVA Solutions||$778.50 million||0.51||$82.20 million||N/A||N/A|
OMNOVA Solutions has higher revenue and earnings than OCI Partners.
This table compares OCI Partners and OMNOVA Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
OCI Partners pays an annual dividend of $0.92 per share and has a dividend yield of 10.8%. OMNOVA Solutions does not pay a dividend. OCI Partners pays out -484.2% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for OCI Partners and OMNOVA Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OCI Partners currently has a consensus target price of $8.00, suggesting a potential downside of 5.88%. OMNOVA Solutions has a consensus target price of $12.00, suggesting a potential upside of 36.36%. Given OMNOVA Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe OMNOVA Solutions is more favorable than OCI Partners.
Volatility and Risk
OCI Partners has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.
Insider & Institutional Ownership
27.0% of OCI Partners shares are owned by institutional investors. Comparatively, 87.3% of OMNOVA Solutions shares are owned by institutional investors. 4.8% of OMNOVA Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
OMNOVA Solutions beats OCI Partners on 11 of the 14 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 OMNOVA Solutions
OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.
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