Financial Contrast: Elementis (OTCMKTS:EMNSF) & Olin (NYSE:OLN)

Elementis (OTCMKTS:EMNSF) and Olin (NYSE:OLN) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Dividends

Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.7%. Elementis pays out 33.3% of its earnings in the form of a dividend. Olin pays out -65.0% 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. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

66.0% of Elementis shares are held by institutional investors. Comparatively, 88.7% of Olin shares are held by institutional investors. 1.6% of Olin shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elementis	N/A	N/A	N/A	$0.24	10.59
Olin	$6.78 billion	0.29	-$100.50 million	($1.23)	-13.96

Elementis has higher earnings, but lower revenue than Olin. Olin is trading at a lower price-to-earnings ratio than Elementis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Elementis and Olin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elementis	N/A	N/A	N/A
Olin	-2.08%	-4.76%	-1.17%

Analyst Recommendations

This is a summary of current ratings and price targets for Elementis and Olin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elementis	0	0	0	0	0.00
Olin	4	10	1	1	1.94

Olin has a consensus price target of $22.62, suggesting a potential upside of 31.71%. Given Olin’s stronger consensus rating and higher probable upside, analysts plainly believe Olin is more favorable than Elementis.

Summary

Olin beats Elementis on 9 of the 14 factors compared between the two stocks.

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.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.