Elementis (OTCMKTS:ELMTY) vs. Quaker Houghton (NYSE:KWR) Head-To-Head Analysis

Quaker Houghton (NYSE:KWR) and Elementis (OTCMKTS:ELMTY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Quaker Houghton and Elementis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaker Houghton	$1.84 billion	1.53	$116.64 million	($0.49)	-331.95
Elementis	$738.30 million	1.60	-$47.80 million	N/A	N/A

Quaker Houghton has higher revenue and earnings than Elementis.

Dividends

Quaker Houghton pays an annual dividend of $2.03 per share and has a dividend yield of 1.2%. Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Quaker Houghton pays out -414.3% of its earnings in the form of a dividend. Quaker Houghton has raised its dividend for 17 consecutive years. Quaker Houghton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Quaker Houghton has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Elementis has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Insider & Institutional Ownership

77.5% of Quaker Houghton shares are owned by institutional investors. 1.1% of Quaker Houghton shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Quaker Houghton and Elementis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaker Houghton	-0.48%	8.64%	4.31%
Elementis	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Quaker Houghton and Elementis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaker Houghton	1	2	3	0	2.33
Elementis	0	0	0	0	0.00

Quaker Houghton currently has a consensus price target of $158.67, indicating a potential downside of 2.45%. Given Quaker Houghton’s stronger consensus rating and higher possible upside, analysts plainly believe Quaker Houghton is more favorable than Elementis.

Summary

Quaker Houghton beats Elementis on 13 of the 15 factors compared between the two stocks.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

About Elementis

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.