Critical Comparison: OCI Partners (OCIP) and The Competition
OCI Partners (NYSE: OCIP) is one of 47 public companies in the “Specialty Chemicals” industry, but how does it contrast to its peers? We will compare OCI Partners to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Institutional and Insider Ownership
15.0% of OCI Partners shares are held by institutional investors. Comparatively, 66.5% of shares of all “Specialty Chemicals” companies are held by institutional investors. 7.6% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
OCI Partners has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, OCI Partners’ peers have a beta of 1.46, meaning that their average stock price is 46% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for OCI Partners and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OCI Partners Competitors||166||1026||1281||24||2.47|
OCI Partners presently has a consensus target price of $7.00, indicating a potential downside of 2.78%. As a group, “Specialty Chemicals” companies have a potential downside of 3.24%. Given OCI Partners’ higher probable upside, equities analysts plainly believe OCI Partners is more favorable than its peers.
This table compares OCI Partners and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OCI Partners Competitors||-6.42%||0.30%||3.68%|
Earnings & Valuation
This table compares OCI Partners and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|OCI Partners||$258.23 million||-$50.55 million||-102.84|
|OCI Partners Competitors||$2.01 billion||$127.25 million||232.73|
OCI Partners’ peers have higher revenue and earnings than OCI Partners. OCI Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
OCI Partners pays an annual dividend of $0.48 per share and has a dividend yield of 6.7%. OCI Partners pays out -685.6% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.2% of their earnings in the form of a dividend. OCI Partners is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
OCI Partners peers beat OCI Partners on 10 of the 14 factors compared.
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.
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