Contrasting Covestro (COVTY) & Its Competitors

Covestro (OTCMKTS:COVTY) is one of 298 public companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Covestro to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Volatility & Risk

Covestro has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Covestro’s competitors have a beta of 1.24, suggesting that their average share price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Covestro and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Covestro	$14.64 billion	-$728.62 million	-13.66
Covestro Competitors	$6.23 billion	$217.41 million	-11.34

Covestro has higher revenue, but lower earnings than its competitors. Covestro is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Covestro and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covestro	-6.97%	-13.22%	-6.31%
Covestro Competitors	-119.30%	-12.76%	-1.98%

Analyst Recommendations

This is a breakdown of recent recommendations for Covestro and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covestro	0	1	0	0	2.00
Covestro Competitors	3113	11898	13920	491	2.40

As a group, “Chemicals” companies have a potential upside of 9.15%. Given Covestro’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Covestro has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

47.0% of shares of all “Chemicals” companies are held by institutional investors. 14.0% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Covestro competitors beat Covestro on 11 of the 13 factors compared.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.