Axalta Coating Systems (NYSE:AXTA) and Croda International (OTCMKTS:COIHY) Critical Analysis

Axalta Coating Systems (NYSE:AXTA) and Croda International (OTCMKTS:COIHY) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Axalta Coating Systems has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Croda International has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

98.3% of Axalta Coating Systems shares are held by institutional investors. Comparatively, 0.1% of Croda International shares are held by institutional investors. 0.3% of Axalta Coating Systems shares are held 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 Axalta Coating Systems and Croda International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axalta Coating Systems	8.58%	25.32%	7.05%
Croda International	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Axalta Coating Systems and Croda International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axalta Coating Systems	0	8	10	0	2.56
Croda International	2	0	0	2	2.50

Axalta Coating Systems currently has a consensus target price of $36.75, indicating a potential upside of 26.39%. Given Axalta Coating Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe Axalta Coating Systems is more favorable than Croda International.

Valuation and Earnings

This table compares Axalta Coating Systems and Croda International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axalta Coating Systems	$5.28 billion	1.19	$391.00 million	$2.04	14.25
Croda International	$2.08 billion	2.68	$202.55 million	N/A	N/A

Axalta Coating Systems has higher revenue and earnings than Croda International.

Summary

Axalta Coating Systems beats Croda International on 11 of the 13 factors compared between the two stocks.

About Axalta Coating Systems

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.