Basf (OTCMKTS: BASFY) and Nexeo Solutions (NASDAQ:NXEO) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Institutional and Insider Ownership
0.5% of Basf shares are held by institutional investors. Comparatively, 96.6% of Nexeo Solutions shares are held by institutional investors. 0.6% of Nexeo Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Basf has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Nexeo Solutions has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.
Basf pays an annual dividend of $0.66 per share and has a dividend yield of 2.9%. Nexeo Solutions does not pay a dividend. Basf pays out 36.3% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Basf and Nexeo Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nexeo Solutions has a consensus price target of $12.50, indicating a potential upside of 25.38%. Given Nexeo Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Nexeo Solutions is more favorable than Basf.
Valuation and Earnings
This table compares Basf and Nexeo Solutions’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Basf||$72.83 billion||1.13||$6.87 billion||$1.82||12.34|
|Nexeo Solutions||$3.64 billion||0.25||$14.40 million||$0.33||30.21|
Basf has higher revenue and earnings than Nexeo Solutions. Basf is trading at a lower price-to-earnings ratio than Nexeo Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares Basf and Nexeo Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Basf beats Nexeo Solutions on 9 of the 15 factors compared between the two stocks.
Basf Company Profile
BASF SE operates as a chemical company worldwide. It operates through five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The Chemicals segment offers solvents, plasticizers, monomers, and glues, as well as raw materials for detergents, plastics, textile fibers, paints and coatings, crop protection products, and medicines. The Performance Products segment provides dispersions and pigments, care chemicals, nutrition and health products, and performance chemicals that are used in pharmaceuticals, personal care products, and cosmetics, as well as hygiene and household products; and other products for enhancing processes in the paper industry and water treatment, as well as in oil, gas, and ore extraction. The Functional Materials & Solutions segment offers catalysts, battery materials, engineering plastics, polyurethane systems, automotive coatings, surface treatment solutions, and concrete admixtures; and tile adhesives and decorative paints for the automotive, electrical, chemical, and construction industries, as well as for household, and sports and leisure applications. The Agricultural Solutions segment provides fungicides, herbicides, and insecticides, as well as functional crop care products. The Oil & Gas segment explores for and produces oil and gas in Europe, North Africa, Russia, South America, and the Middle East. It also produces ammonia; and transports natural gas in Europe. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.
Nexeo Solutions Company Profile
Nexeo Solutions, Inc. operates as a chemical and plastic products distributor in North America, Europe, the Middle East, Africa, and Asia. The company operates through Chemicals, Plastics, and Environmental Services segments. It provides approximately 22,000 products used in various industries, including household, industrial and institutional, lubricants, architectural coatings, adhesives, sealants, elastomers, automotive, healthcare, personal care, oil and gas, and construction. The company was formerly known as WL Ross Holding Corp. and changed its name to Nexeo Solutions, Inc. in June 2016. Nexeo Solutions, Inc. was founded in 2014 and is based in The Woodlands, Texas.
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