Platform Specialty Products (NYSE: PAH) and Rayonier Advanced Materials (NYSE:RYAM) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
This table compares Platform Specialty Products and Rayonier Advanced Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Platform Specialty Products||-4.12%||7.45%||2.15%|
|Rayonier Advanced Materials||4.98%||18.12%||2.79%|
Valuation & Earnings
This table compares Platform Specialty Products and Rayonier Advanced Materials’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Platform Specialty Products||$3.59 billion||0.84||-$73.70 million||($0.48)||-21.94|
|Rayonier Advanced Materials||$869.00 million||1.02||$73.28 million||$0.54||38.06|
Rayonier Advanced Materials has lower revenue, but higher earnings than Platform Specialty Products. Platform Specialty Products is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Platform Specialty Products does not pay a dividend. Rayonier Advanced Materials pays out 51.9% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Platform Specialty Products and Rayonier Advanced Materials, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Platform Specialty Products||0||3||6||0||2.67|
|Rayonier Advanced Materials||0||0||5||0||3.00|
Platform Specialty Products presently has a consensus price target of $13.11, suggesting a potential upside of 24.51%. Rayonier Advanced Materials has a consensus price target of $19.20, suggesting a potential downside of 6.57%. Given Platform Specialty Products’ higher probable upside, equities analysts plainly believe Platform Specialty Products is more favorable than Rayonier Advanced Materials.
Volatility & Risk
Platform Specialty Products has a beta of 3.07, meaning that its share price is 207% more volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 4.41, meaning that its share price is 341% more volatile than the S&P 500.
Institutional and Insider Ownership
93.5% of Platform Specialty Products shares are held by institutional investors. Comparatively, 95.2% of Rayonier Advanced Materials shares are held by institutional investors. 5.2% of Platform Specialty Products shares are held by insiders. Comparatively, 2.1% of Rayonier Advanced Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Rayonier Advanced Materials beats Platform Specialty Products on 11 of the 16 factors compared between the two stocks.
Platform Specialty Products Company Profile
Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers plating products that are used to plate holes; electroless nickel products, which are applied to various metal and plastic surfaces; electronic assembly materials for use in the electronic market and residential boiler systems; final finishes that are used on printed circuit boards; circuit formation products for surface preparation; oxides, which are used in the fabrication of multilayer circuit boards; semiconductor materials and packaging products; and pre-treatment and cleaning solutions. This segment also provides functional conversion coatings that are applied to metals to enhance corrosion resistance and paint adhesion; hard-coated films, which are used for the membrane switch in the touch screen markets; production and drilling fluids used in subsea control systems; solid sheet printing elements for use in flexographic printing and platemaking processes; liquid products to produce printing plates; and printing equipment. The Agricultural Solutions segment offers fungicides and biofungicides to prevent the spread of fungi and other diseases in crops; herbicides to control unwanted plants; insecticides, bioinsecticides, and acaricides; biostimulants and nutrition products; and seed treatment products, which are applied to seed before planting, as well as animal health products, such as honey bee protective miticides and veterinary vaccines. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in West Palm Beach, Florida.
Rayonier Advanced Materials Company Profile
Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.
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