Critical Comparison: Kronos Worldwide (KRO) versus The Competition

Kronos Worldwide (NYSE: KRO) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it contrast to its competitors? We will compare Kronos Worldwide to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

Kronos Worldwide has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Kronos Worldwide’s competitors have a beta of 1.58, meaning that their average share price is 58% more volatile than the S&P 500.

Dividends

Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Kronos Worldwide pays out 24.9% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.3% of their earnings in the form of a dividend. Kronos Worldwide is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Kronos Worldwide 18.57% 24.73% 9.09%
Kronos Worldwide Competitors -2.31% 9.09% 4.11%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Kronos Worldwide $1.50 billion $240.60 million 9.24
Kronos Worldwide Competitors $1.95 billion $301.80 million 16.72

Kronos Worldwide’s competitors have higher revenue and earnings than Kronos Worldwide. Kronos Worldwide 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.

Institutional & Insider Ownership

15.4% of Kronos Worldwide shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 0.1% of Kronos Worldwide shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kronos Worldwide and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kronos Worldwide 1 1 0 0 1.50
Kronos Worldwide Competitors 255 1208 1321 33 2.40

Kronos Worldwide currently has a consensus price target of $17.00, indicating a potential downside of 23.63%. As a group, “Specialty Chemicals” companies have a potential upside of 2.76%. Given Kronos Worldwide’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Kronos Worldwide has less favorable growth aspects than its competitors.

Summary

Kronos Worldwide competitors beat Kronos Worldwide on 8 of the 15 factors compared.

About Kronos Worldwide

Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.

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