Valvoline (NYSE: VVV) and Terravia Holdings (NASDAQ:TVIA) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Valuation and Earnings

This table compares Valvoline and Terravia Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Valvoline $2.03 billion 2.32 $520.00 million $1.29 17.98
Terravia Holdings N/A N/A N/A ($1.10) -0.04

Valvoline has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.

Dividends

Valvoline pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Terravia Holdings does not pay a dividend. Valvoline pays out 15.5% of its earnings in the form of a dividend.

Profitability

This table compares Valvoline and Terravia Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valvoline 13.00% -106.06% 14.55%
Terravia Holdings -413.48% N/A -61.89%

Institutional and Insider Ownership

92.3% of Valvoline shares are owned by institutional investors. Comparatively, 43.4% of Terravia Holdings shares are owned by institutional investors. 0.1% of Valvoline shares are owned by insiders. Comparatively, 10.1% of Terravia Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Valvoline and Terravia Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valvoline 0 6 5 0 2.45
Terravia Holdings 0 1 0 0 2.00

Valvoline presently has a consensus target price of $25.40, suggesting a potential upside of 9.48%. Terravia Holdings has a consensus target price of $1.50, suggesting a potential upside of 3,659.40%. Given Terravia Holdings’ higher probable upside, analysts clearly believe Terravia Holdings is more favorable than Valvoline.

Summary

Valvoline beats Terravia Holdings on 8 of the 12 factors compared between the two stocks.

Valvoline Company Profile

Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.

Terravia Holdings Company Profile

Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.

Receive News & Ratings for Valvoline Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valvoline Inc. and related companies with MarketBeat.com's FREE daily email newsletter.