Valvoline (VVV) and Cytec Industries (CYT) Critical Comparison

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

Profitability

This table compares Cytec Industries and Valvoline’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%
Valvoline 14.59% -137.91% 14.86%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cytec Industries N/A N/A N/A $1.78 42.23
Valvoline $2.08 billion 2.38 $304.00 million $1.49 16.51

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

Dividends

Valvoline pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Cytec Industries does not pay a dividend. Valvoline pays out 20.1% of its earnings in the form of a dividend. Cytec Industries has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cytec Industries and Valvoline, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cytec Industries 0 0 0 0 N/A
Valvoline 0 5 2 0 2.29

Valvoline has a consensus price target of $25.71, indicating a potential upside of 4.53%. Given Valvoline’s higher possible upside, analysts plainly believe Valvoline is more favorable than Cytec Industries.

Insider and Institutional Ownership

92.4% of Valvoline shares are held by institutional investors. 0.6% of Valvoline shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Valvoline beats Cytec Industries on 8 of the 13 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.

Valvoline Company Profile

Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.

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