Reviewing Huntsman (HUN) and Platform Specialty Products (PAH)

Huntsman (NYSE: HUN) and Platform Specialty Products (NYSE:PAH) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

75.5% of Huntsman shares are owned by institutional investors. Comparatively, 93.5% of Platform Specialty Products shares are owned by institutional investors. 19.0% of Huntsman shares are owned by company insiders. Comparatively, 5.2% of Platform Specialty Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Huntsman and Platform Specialty Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntsman 0 1 9 0 2.90
Platform Specialty Products 0 3 6 0 2.67

Huntsman currently has a consensus price target of $33.10, suggesting a potential upside of 4.35%. Platform Specialty Products has a consensus price target of $13.11, suggesting a potential upside of 37.87%. Given Platform Specialty Products’ higher probable upside, analysts clearly believe Platform Specialty Products is more favorable than Huntsman.

Volatility and Risk

Huntsman has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500. Comparatively, Platform Specialty Products has a beta of 3.19, indicating that its stock price is 219% more volatile than the S&P 500.

Dividends

Huntsman pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Platform Specialty Products does not pay a dividend. Huntsman pays out 23.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Huntsman and Platform Specialty Products’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntsman $9.66 billion 0.79 $326.00 million $2.13 14.89
Platform Specialty Products $3.59 billion 0.76 -$73.70 million ($0.53) -17.94

Huntsman has higher revenue and earnings than Platform Specialty Products. Platform Specialty Products is trading at a lower price-to-earnings ratio than Huntsman, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Huntsman and Platform Specialty Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntsman 5.37% 30.64% 6.06%
Platform Specialty Products -4.12% 7.45% 2.15%

Summary

Huntsman beats Platform Specialty Products on 12 of the 16 factors compared between the two stocks.

Huntsman Company Profile

Huntsman Corporation is a manufacturer of differentiated organic chemical products and of inorganic chemical products. The Company operates all of its businesses through its subsidiary, Huntsman International LLC (Huntsman International). The Company operates through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. Its Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and its Pigments and Additives segment produces inorganic chemical products. The Company’s products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.

Platform Specialty Products Company Profile

Platform Specialty Products Corporation produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers plating products that are used to plate holes; electroless nickel products, which are applied to various metal and plastic surfaces; electronic assembly materials for use in the electronic market and residential boiler systems; final finishes that are used on printed circuit boards; circuit formation products for surface preparation; oxides, which are used in the fabrication of multilayer circuit boards; semiconductor materials and packaging products; and pre-treatment and cleaning solutions. This segment also provides functional conversion coatings that are applied to metals to enhance corrosion resistance and paint adhesion; hard-coated films, which are used for the membrane switch in the touch screen markets; production and drilling fluids used in subsea control systems; solid sheet printing elements for use in flexographic printing and platemaking processes; liquid products to produce printing plates; and printing equipment. The Agricultural Solutions segment offers fungicides and biofungicides to prevent the spread of fungi and other diseases in crops; herbicides to control unwanted plants; insecticides, bioinsecticides, and acaricides; biostimulants and nutrition products; and seed treatment products, which are applied to seed before planting, as well as animal health products, such as honey bee protective miticides and veterinary vaccines. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in West Palm Beach, Florida.

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