Tronox (TROX) and Its Peers Head-To-Head Contrast

Tronox (NYSE:TROX) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its peers? We will compare Tronox to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Dividends

Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 7.0%. Tronox pays out -6.3% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.6% of their earnings in the form of a dividend. Tronox is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk & Volatility

Tronox has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Tronox’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

73.4% of Tronox shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 2.0% of Tronox shares are owned by company insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Tronox and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	4	4	1	0	1.67
Tronox Competitors	3257	12227	14146	519	2.40

Tronox presently has a consensus target price of $5.33, indicating a potential upside of 86.61%. As a group, “Chemicals” companies have a potential upside of 7.74%. Given Tronox’s higher possible upside, analysts plainly believe Tronox is more favorable than its peers.

Profitability

This table compares Tronox and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tronox	-15.86%	-25.02%	-5.31%
Tronox Competitors	-59.13%	-0.46%	-1.40%

Valuation and Earnings

This table compares Tronox and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tronox	$2.90 billion	-$470.00 million	-0.90
Tronox Competitors	$6.40 billion	$230.87 million	9.86

Tronox’s peers have higher revenue and earnings than Tronox. Tronox is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Tronox peers beat Tronox on 9 of the 15 factors compared.

About Tronox

Tronox Holdings plc is a vertically integrated producer of titanium dioxide (TiO₂) pigment and mineral-sands products. Its operations span the value chain from mining titanium-bearing mineral sands to processing them into feedstocks and finished products. The company’s products include TiO₂ pigment, used to add whiteness, brightness and opacity to paints, coatings, plastics and other materials. Tronox also produces titanium feedstocks such as chloride-grade slag and synthetic rutile, as well as zircon, which is used in ceramics and other applications.