Analyzing Orion Engineered Carbons (NYSE:OEC) & Atotech (NYSE:ATC)

Orion Engineered Carbons (NYSE:OEC) and Atotech (NYSE:ATC) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares Orion Engineered Carbons and Atotech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orion Engineered Carbons $1.14 billion 1.04 $18.16 million $1.04 18.74
Atotech $1.23 billion 3.74 -$289.40 million ($4.64) -5.11

Orion Engineered Carbons has higher earnings, but lower revenue than Atotech. Atotech is trading at a lower price-to-earnings ratio than Orion Engineered Carbons, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orion Engineered Carbons and Atotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orion Engineered Carbons 2.04% 38.83% 4.96%
Atotech N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings for Orion Engineered Carbons and Atotech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orion Engineered Carbons 1 0 2 0 2.33
Atotech 0 1 8 0 2.89

Orion Engineered Carbons presently has a consensus target price of $17.67, suggesting a potential downside of 9.36%. Atotech has a consensus target price of $23.57, suggesting a potential downside of 0.54%. Given Atotech’s stronger consensus rating and higher probable upside, analysts clearly believe Atotech is more favorable than Orion Engineered Carbons.

Insider and Institutional Ownership

89.2% of Orion Engineered Carbons shares are held by institutional investors. Comparatively, 93.0% of Atotech shares are held by institutional investors. 0.9% of Orion Engineered Carbons shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Orion Engineered Carbons beats Atotech on 7 of the 13 factors compared between the two stocks.

About Orion Engineered Carbons

Orion Engineered Carbons S.A., together with its subsidiaries, produces and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and various conductive carbon black grades for polymers, coatings, and battery electrodes. It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. The company was formerly known as Orion Engineered Carbons S.à r.l. and changed its name to Orion Engineered Carbons S.A. in July 2014. Orion Engineered Carbons S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

About Atotech

Atotech Limited, a chemicals technology company, provides specialty electroplating and surface finishing solutions worldwide. The company operates in two segments, Electronics (EL) and General Metal Finishing (GMF). The EL segment manufactures and supplies chemistry, production equipment, and services to the electronics industry, which include printed circuit board manufacturers, package substrate makers, and semiconductor companies. Its products and technologies serve the principal electronics end-markets, including communication, computer, automotive, industrial, medical, aerospace, and military industries. The GMF segment provides chemistry, production technology, and services to the surface finishing industries in various areas of application. Its products and technologies serve the primary surface finishing end-markets comprising the automotive, consumer electronics, construction, sanitary, white goods, and oil and gas industries. The company also offers on-site support and training services. Atotech Limited was founded in 1851 and is headquartered in West Bromwich, United Kingdom.

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