Huntsman Corporation (NYSE: HUN) and OMNOVA Solutions (NYSE:OMN) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Institutional & Insider Ownership

75.1% of Huntsman Corporation shares are held by institutional investors. Comparatively, 88.0% of OMNOVA Solutions shares are held by institutional investors. 19.0% of Huntsman Corporation shares are held by insiders. Comparatively, 4.8% of OMNOVA Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Huntsman Corporation and OMNOVA Solutions’ 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 0.67 $1.18 billion $1.76 15.52
OMNOVA Solutions $778.50 million 0.52 $82.20 million ($0.21) -43.33

Huntsman Corporation has higher revenue and earnings than OMNOVA Solutions. OMNOVA Solutions is trading at a lower price-to-earnings ratio than Huntsman Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Huntsman Corporation and OMNOVA Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntsman Corporation 0 1 6 0 2.86
OMNOVA Solutions 0 1 2 0 2.67

Huntsman Corporation presently has a consensus target price of $30.29, suggesting a potential upside of 10.86%. OMNOVA Solutions has a consensus target price of $12.00, suggesting a potential upside of 31.87%. Given OMNOVA Solutions’ higher probable upside, analysts clearly believe OMNOVA Solutions is more favorable than Huntsman Corporation.

Dividends

Huntsman Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. OMNOVA Solutions does not pay a dividend. Huntsman Corporation pays out 28.4% of its earnings in the form of a dividend.

Profitability

This table compares Huntsman Corporation and OMNOVA Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntsman Corporation 4.33% 30.04% 5.34%
OMNOVA Solutions -1.19% 18.52% 2.97%

Risk & Volatility

Huntsman Corporation has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.

Summary

Huntsman Corporation beats OMNOVA Solutions on 12 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.

OMNOVA Solutions Company Profile

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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