Analyzing Covestro (OTCMKTS:COVTY) and 5N Plus (OTCMKTS:FPLSF)

5N Plus (OTCMKTS:FPLSF) and Covestro (OTCMKTS:COVTY) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Volatility & Risk

5N Plus has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Covestro has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares 5N Plus and Covestro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
5N Plus	14.14%	26.36%	11.28%
Covestro	N/A	N/A	N/A

Earnings and Valuation

This table compares 5N Plus and Covestro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
5N Plus	$391.06 million	4.31	$50.57 million	$0.70	26.77
Covestro	$14.64 billion	0.95	-$728.62 million	($2.53)	-13.20

5N Plus has higher earnings, but lower revenue than Covestro. Covestro is trading at a lower price-to-earnings ratio than 5N Plus, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.1% of 5N Plus shares are owned by institutional investors. 3.9% of 5N Plus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for 5N Plus and Covestro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
5N Plus	0	1	2	1	3.00
Covestro	0	1	0	0	2.00

Summary

5N Plus beats Covestro on 13 of the 14 factors compared between the two stocks.

About 5N Plus

5N Plus Inc. produces and sells specialty metals and chemicals in North America, Europe, and Asia. It operates through two segments, Specialty Semiconductors and Performance Materials. The company offers semiconductor compounds, semiconductor wafers, metals, epitaxial semiconductor substrates, and solar cells. It also provides active pharmaceutical ingredients, animal feed additives, specialized chemicals, commercial grade metals, alloys, engineered powders, and recycling services. The company serves renewable energy, security, space, pharmaceutical, medical imaging, manufacturing, electronic, consumer, and industrial application markets. 5N Plus Inc. is headquartered in Montreal, Canada.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.