Financial Contrast: SIKA (OTCMKTS:SXYAY) vs. Trinseo (NYSE:TSE)

SIKA (OTCMKTS:SXYAY) and Trinseo (NYSE:TSE) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

82.7% of Trinseo shares are owned by institutional investors. 4.5% of Trinseo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SIKA and Trinseo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIKA	N/A	N/A	N/A
Trinseo	-13.15%	N/A	-11.72%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SIKA and Trinseo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIKA	1	3	2	3	2.78
Trinseo	1	2	0	0	1.67

Trinseo has a consensus target price of $1.00, suggesting a potential upside of 100.00%. Given Trinseo’s higher possible upside, analysts clearly believe Trinseo is more favorable than SIKA.

Earnings and Valuation

This table compares SIKA and Trinseo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIKA	$13.36 billion	2.24	$1.41 billion	N/A	N/A
Trinseo	$3.51 billion	0.01	-$348.50 million	($11.55)	-0.04

SIKA has higher revenue and earnings than Trinseo.

Summary

SIKA beats Trinseo on 8 of the 11 factors compared between the two stocks.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

About Trinseo

Trinseo PLC operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally. It operates through five segments: Engineered Materials, Latex Binders, Plastics Solutions, Polystyrene, and Americas Styrenics. The Engineered Materials segment offers rigid thermoplastic compounds and blends, soft thermoplastic, continuous cast, cell cast, activated methyl methacrylates (MMA), PMMA resins, and extruded PMMA sheets and resins for consumer electronics, medical, footwear, automotive, and building and construction applications under the EMERGE, CALIBRE, PLEXIGLAS, ALTUGLAS, ACRYSPA, AVONITE, STUDIO, MEGOL, APILON, APIGO, and APINAT brands. The Latex Binders segment provides styrene-butadiene latex, and other latex polymers and binders primarily for coated paper and packaging board, carpet, and artificial turf backings, as well as the adhesive, building and construction, and technical textile paper market. The Plastics Solutions segment offers acrylonitrile-butadiene-styrene, styrene-acrylonitrile, polycarbonate, and compounds and blends for automotive and other applications under the MAGNUM brand. The Polystyrene segment provides general purpose polystyrenes and high impact polystyrene for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials under the STYRON brand. The Americas Styrenics segment provides styrene and polystyrene for appliances, food packaging, food service disposables, consumer electronics, and building and construction materials applications. Trinseo PLC was incorporated in 2015 and is headquartered in Wayne, Pennsylvania.