Reviewing OCI Partners (OCIP) & The Competition

OCI Partners (NYSE: OCIP) is one of 44 public companies in the “Specialty Chemicals” industry, but how does it contrast to its rivals? We will compare OCI Partners to related businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

OCI Partners pays an annual dividend of $0.48 per share and has a dividend yield of 6.9%. OCI Partners pays out -685.6% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 27.3% of their earnings in the form of a dividend. OCI Partners is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for OCI Partners and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OCI Partners 1 0 0 0 1.00
OCI Partners Competitors 142 831 1056 24 2.47

OCI Partners currently has a consensus target price of $7.00, suggesting a potential upside of 0.00%. As a group, “Specialty Chemicals” companies have a potential downside of 0.68%. Given OCI Partners’ higher probable upside, equities research analysts clearly believe OCI Partners is more favorable than its rivals.

Volatility & Risk

OCI Partners has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, OCI Partners’ rivals have a beta of 1.33, meaning that their average share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

15.0% of OCI Partners shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 7.5% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares OCI Partners and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OCI Partners -1.79% -3.70% -0.86%
OCI Partners Competitors -7.97% -1.72% 3.17%

Valuation and Earnings

This table compares OCI Partners and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
OCI Partners $258.23 million -$50.55 million -99.99
OCI Partners Competitors $1.91 billion $115.75 million 143.42

OCI Partners’ rivals have higher revenue and earnings than OCI Partners. OCI Partners is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

OCI Partners rivals beat OCI Partners on 10 of the 14 factors compared.

OCI Partners Company Profile

OCI Partners LP owns and operates an integrated methanol and ammonia production facility that is located on the Texas Gulf Coast near Beaumont. The Company has an annual methanol production capacity of approximately 912,500 metric tons and an annual ammonia production capacity of approximately 331,000 metric tons. It purchases natural gas from third parties and processes the natural gas into synthesis gas, which it then further processes in the production of methanol and ammonia. It stores and sells the processed methanol and ammonia to industrial and commercial customers for further processing or distribution. Its methanol production unit comprises Foster-Wheeler-designed twin steam methane reformers for synthesis gas production, over two Lurgi-designed parallel low-pressure, water-cooled reactors and approximately four distillation columns. The Haldor-Topsoe-designed ammonia synthesis loop at its facility processes hydrogen produced by methanol production process.

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