Analyzing Ferro (FOE) and W.R. Grace & Co. (GRA)
Ferro (NYSE: FOE) and W.R. Grace & Co. (NYSE:GRA) are both mid-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
This is a summary of current ratings and recommmendations for Ferro and W.R. Grace & Co., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|W.R. Grace & Co.||0||3||7||0||2.70|
Ferro presently has a consensus target price of $23.00, suggesting a potential downside of 8.18%. W.R. Grace & Co. has a consensus target price of $81.00, suggesting a potential upside of 12.44%. Given W.R. Grace & Co.’s higher possible upside, analysts clearly believe W.R. Grace & Co. is more favorable than Ferro.
Risk and Volatility
Ferro has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, W.R. Grace & Co. has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
98.1% of Ferro shares are owned by institutional investors. Comparatively, 84.8% of W.R. Grace & Co. shares are owned by institutional investors. 2.0% of Ferro shares are owned by insiders. Comparatively, 1.3% of W.R. Grace & Co. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
W.R. Grace & Co. pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Ferro does not pay a dividend. W.R. Grace & Co. pays out 38.0% of its earnings in the form of a dividend.
This table compares Ferro and W.R. Grace & Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|W.R. Grace & Co.||8.54%||48.03%||6.40%|
Valuation and Earnings
This table compares Ferro and W.R. Grace & Co.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ferro||$1.15 billion||1.83||-$20.81 million||$0.52||48.17|
|W.R. Grace & Co.||$1.60 billion||3.05||$94.10 million||$2.21||32.60|
W.R. Grace & Co. has higher revenue and earnings than Ferro. W.R. Grace & Co. is trading at a lower price-to-earnings ratio than Ferro, indicating that it is currently the more affordable of the two stocks.
W.R. Grace & Co. beats Ferro on 10 of the 16 factors compared between the two stocks.
Ferro Company Profile
Ferro Corporation (Ferro) produces specialty materials that are sold to a range of manufacturers. The Company’s segments include Performance Coatings; Performance Colors and Glass, and Pigments, Powders and Oxides. Its Performance Coatings segment includes Tile Coating Systems and Porcelain Enamel. Its manufacturers make products for various end-use markets. The Company’s products fall into two general categories: functional coatings, which perform specific functions in the manufacturing processes and end products of its customers, and color solutions, which provide aesthetic and performance characteristics to its customers’ products. Its products are used in a range of product applications in markets, including appliances, automobiles, building and renovation, electronics, household furnishings, industrial products and packaging.
W.R. Grace & Co. Company Profile
W. R. Grace & Co. (Grace) is engaged in the production and sale of specialty chemicals and specialty materials. The Company operates in two segments: Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. The Grace Materials Technologies segment includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. It Grace Catalysts Technologies segment produces and sells catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications, including Fluid catalytic cracking catalysts (FCC), Hydroprocessing catalysts (HPC), and Polyolefin catalysts and catalyst supports.
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