Methanex Corporation (NASDAQ: MEOH) and Chemours Company (The) (NYSE:CC) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Insider and Institutional Ownership

83.4% of Methanex Corporation shares are owned by institutional investors. Comparatively, 72.9% of Chemours Company (The) shares are owned by institutional investors. 1.0% of Methanex Corporation shares are owned by insiders. Comparatively, 1.1% of Chemours Company (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Methanex Corporation has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Chemours Company (The) has a beta of 3.59, meaning that its share price is 259% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Methanex Corporation and Chemours Company (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Methanex Corporation 1 5 7 0 2.46
Chemours Company (The) 0 0 7 0 3.00

Methanex Corporation currently has a consensus price target of $54.73, suggesting a potential upside of 10.79%. Chemours Company (The) has a consensus price target of $52.71, suggesting a potential upside of 6.17%. Given Methanex Corporation’s higher probable upside, analysts clearly believe Methanex Corporation is more favorable than Chemours Company (The).

Valuation & Earnings

This table compares Methanex Corporation and Chemours Company (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Methanex Corporation $2.00 billion 2.07 -$12.54 million $3.01 16.41
Chemours Company (The) $5.40 billion 1.70 $7.00 million $1.45 34.24

Chemours Company (The) has higher revenue and earnings than Methanex Corporation. Methanex Corporation is trading at a lower price-to-earnings ratio than Chemours Company (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Methanex Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Methanex Corporation pays out 39.9% of its earnings in the form of a dividend. Chemours Company (The) pays out 8.3% 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.

Profitability

This table compares Methanex Corporation and Chemours Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Methanex Corporation 9.81% 16.02% 6.31%
Chemours Company (The) 4.86% 116.80% 8.10%

Summary

Chemours Company (The) beats Methanex Corporation on 9 of the 15 factors compared between the two stocks.

Methanex Corporation Company Profile

Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

Chemours Company (The) Company Profile

The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.

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