Analyzing Trinseo (TSE) & Cytec Industries (CYT)

Cytec Industries (NYSE: CYT) and Trinseo (NYSE:TSE) are both mid-cap specialty chemicals – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

94.9% of Trinseo shares are owned by institutional investors. 0.3% of Trinseo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cytec Industries and Trinseo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytec Industries 0 0 0 0 N/A
Trinseo 0 2 3 0 2.60

Trinseo has a consensus target price of $76.25, indicating a potential upside of 8.77%. Given Trinseo’s higher possible upside, analysts plainly believe Trinseo is more favorable than Cytec Industries.

Profitability

This table compares Cytec Industries and Trinseo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cytec Industries 11.96% 18.60% 8.55%
Trinseo 6.78% 65.80% 13.58%

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.1%. Cytec Industries does not pay a dividend. Trinseo pays out 22.5% of its earnings in the form of a dividend. Cytec Industries has raised its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Cytec Industries and Trinseo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cytec Industries N/A N/A N/A $1.78 42.23
Trinseo $3.72 billion 0.82 $318.31 million $6.39 10.97

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

Summary

Trinseo beats Cytec Industries on 9 of the 12 factors compared between the two stocks.

Cytec Industries Company Profile

Cytec Industries Inc. is a global specialty materials and chemicals company focused on developing, manufacturing and selling value-added products. The Company offers aerospace and industrial materials, mining and plastics industries. The Company operates through four segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials, which serve automotive, motorsports, recreation, tooling, and other structural materials markets and process materials, which serves aerospace, wind energy, and other process materials markets. The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives, and formulated resins. The Company operates as a wholly owned subsidiary of Solvay.

Trinseo Company Profile

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

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