Huntsman Corporation (HUN) and Kronos Worldwide (KRO) Financial Analysis
Huntsman Corporation (NYSE: HUN) and Kronos Worldwide (NYSE:KRO) are both mid-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Risk and Volatility
Huntsman Corporation has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.
This table compares Huntsman Corporation and Kronos Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
70.7% of Huntsman Corporation shares are owned by institutional investors. Comparatively, 14.4% of Kronos Worldwide shares are owned by institutional investors. 19.0% of Huntsman Corporation shares are owned by insiders. Comparatively, 0.1% of Kronos Worldwide shares are owned 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.
This is a summary of current ratings and price targets for Huntsman Corporation and Kronos Worldwide, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Huntsman Corporation currently has a consensus target price of $29.14, suggesting a potential upside of 15.88%. Kronos Worldwide has a consensus target price of $17.00, suggesting a potential downside of 12.82%. Given Huntsman Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Huntsman Corporation is more favorable than Kronos Worldwide.
Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Huntsman Corporation pays out 28.4% of its earnings in the form of a dividend. Kronos Worldwide pays out 24.9% 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. Kronos Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Huntsman Corporation and Kronos Worldwide’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Huntsman Corporation||$9.84 billion||0.61||$1.18 billion||$1.76||14.29|
|Kronos Worldwide||$1.50 billion||1.51||$240.60 million||$2.41||8.09|
Huntsman Corporation has higher revenue and earnings than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than Huntsman Corporation, indicating that it is currently the more affordable of the two stocks.
Huntsman Corporation beats Kronos Worldwide on 9 of the 16 factors compared between the two stocks.
Huntsman Corporation Company Profile
Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.
Kronos Worldwide Company Profile
Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.
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