Head to Head Survey: DuPont de Nemours (NYSE:DD) versus Tronox (NYSE:TROX)

DuPont de Nemours (NYSE:DD) and Tronox (NYSE:TROX) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Earnings and Valuation

This table compares DuPont de Nemours and Tronox”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DuPont de Nemours	$12.39 billion	2.75	$703.00 million	($0.47)	-173.01
Tronox	$3.07 billion	0.19	-$48.00 million	($1.58)	-2.35

DuPont de Nemours has higher revenue and earnings than Tronox. DuPont de Nemours is trading at a lower price-to-earnings ratio than Tronox, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

DuPont de Nemours has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Tronox has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Dividends

DuPont de Nemours pays an annual dividend of $1.64 per share and has a dividend yield of 2.0%. Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 5.4%. DuPont de Nemours pays out -348.9% of its earnings in the form of a dividend. Tronox pays out -12.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares DuPont de Nemours and Tronox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DuPont de Nemours	-1.54%	7.85%	5.10%
Tronox	-8.48%	-4.83%	-1.40%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DuPont de Nemours and Tronox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DuPont de Nemours	1	4	9	0	2.57
Tronox	3	3	4	0	2.10

DuPont de Nemours currently has a consensus price target of $89.75, suggesting a potential upside of 10.37%. Tronox has a consensus price target of $4.99, suggesting a potential upside of 34.29%. Given Tronox’s higher possible upside, analysts clearly believe Tronox is more favorable than DuPont de Nemours.

Insider & Institutional Ownership

74.0% of DuPont de Nemours shares are held by institutional investors. Comparatively, 73.4% of Tronox shares are held by institutional investors. 0.6% of DuPont de Nemours shares are held by company insiders. Comparatively, 1.7% of Tronox shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

DuPont de Nemours beats Tronox on 11 of the 16 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.