Financial Comparison: Olin (NYSE:OLN) versus RPM International (NYSE:RPM)

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

Institutional & Insider Ownership

80.9% of RPM International shares are held by institutional investors. Comparatively, 88.7% of Olin shares are held by institutional investors. 1.5% of RPM International shares are held by insiders. Comparatively, 1.6% of Olin shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for RPM International and Olin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	4	11	0	2.73
Olin	3	12	1	0	1.88

RPM International currently has a consensus price target of $121.85, suggesting a potential upside of 15.46%. Olin has a consensus price target of $20.64, suggesting a potential upside of 15.97%. Given Olin’s higher possible upside, analysts plainly believe Olin is more favorable than RPM International.

Volatility & Risk

RPM International has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Olin has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares RPM International and Olin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.86 billion	1.71	$661.39 million	$5.40	19.54
Olin	$6.78 billion	0.30	-$100.50 million	($1.47)	-12.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RPM International	8.66%	22.03%	8.91%
Olin	-2.49%	-6.63%	-1.58%

Dividends

RPM International pays an annual dividend of $2.28 per share and has a dividend yield of 2.2%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. RPM International pays out 42.2% of its earnings in the form of a dividend. Olin pays out -54.4% 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. RPM International has raised its dividend for 51 consecutive years. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

RPM International beats Olin on 11 of the 17 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and markets specialty coatings, sealants, building materials and related products for industrial, commercial and consumer markets. Its offerings include protective paints and coatings, roofing and waterproofing systems, flooring, construction sealants and adhesives, and maintenance products. The company sells products through a portfolio of well-known brands, including Rust-Oleum, DAP, Zinsser, Tremco, Carboline and Stonhard. Its products are used in applications ranging from home improvement and building construction to industrial and infrastructure maintenance.

About Olin

Olin Corporation is a chemicals and ammunition manufacturer headquartered in Clayton, Missouri. Its businesses include chlor-alkali products and vinyls, epoxy materials, and Winchester-branded ammunition. Olin’s chemical operations produce chlorine, caustic soda, vinyl chloride and related products, as well as epoxy resins and intermediates. These materials serve customers in industries such as construction, water treatment, manufacturing and transportation. The company traces its origins to 1892, when Franklin W. Olin founded the Equitable Powder Company.