COVESTRO AG/S (OTCMKTS:COVTY) and PETROFAC LTD/ADR (OTCMKTS:POFCY) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Dividends

COVESTRO AG/S pays an annual dividend of $0.98 per share and has a dividend yield of 6.9%. PETROFAC LTD/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 13.3%. COVESTRO AG/S pays out 17.5% of its earnings in the form of a dividend. PETROFAC LTD/ADR pays out 23.1% 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.

Valuation and Earnings

This table compares COVESTRO AG/S and PETROFAC LTD/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COVESTRO AG/S $17.26 billion 0.30 $2.15 billion $5.59 2.56
PETROFAC LTD/ADR $5.83 billion 0.11 $64.00 million $0.52 1.74

COVESTRO AG/S has higher revenue and earnings than PETROFAC LTD/ADR. PETROFAC LTD/ADR is trading at a lower price-to-earnings ratio than COVESTRO AG/S, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

COVESTRO AG/S has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, PETROFAC LTD/ADR has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for COVESTRO AG/S and PETROFAC LTD/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COVESTRO AG/S 1 2 2 0 2.20
PETROFAC LTD/ADR 1 0 1 0 2.00

Profitability

This table compares COVESTRO AG/S and PETROFAC LTD/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COVESTRO AG/S 7.10% 17.53% 8.15%
PETROFAC LTD/ADR N/A N/A N/A

Insider & Institutional Ownership

0.1% of COVESTRO AG/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

COVESTRO AG/S beats PETROFAC LTD/ADR on 13 of the 14 factors compared between the two stocks.

COVESTRO AG/S Company Profile

Covestro AG develops, produces, and markets polymer materials for various industries worldwide. The company operates in three segments: Polyurethanes; Polycarbonates; and Coatings, Adhesives, Specialties. The Polyurethanes segment offers precursors, such as flexible polyurethane foam primarily used in the furniture and automotive industries; and rigid foam used as insulating material in the construction industry and in refrigeration chains. The Polycarbonates segment provides high-performance plastic polycarbonates in the form of granules, composite materials, and semi-finished products for use in the automotive, construction, electrical and electronic, medical technology, and lighting industries. The Coatings, Adhesives, Specialties segment offers precursors for coatings, adhesives, and sealants, as well as specialties. This segment also provides polymer materials and aqueous dispersions for use in automotive and transportation, infrastructure and construction, wood processing, and furniture applications. It markets its products through trading houses and distributors. The company has partnership with Genomatica, Inc. to research and develop high-performance materials based on renewable feed-stocks. Covestro AG was founded in 2005 and is headquartered in Leverkusen, Germany.

PETROFAC LTD/ADR Company Profile

Petrofac Ltd. engages in the provision of services to the oil and gas production and processing industry. It offers engineering and construction; operations and maintenance; and training and competence. The company was founded in 1981 and is headquartered in St. Helier, the United Kingdom.

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