Eastman Chemical (NYSE: EMN) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Insider and Institutional Ownership
82.7% of Eastman Chemical shares are owned by institutional investors. Comparatively, 42.7% of Trecora Resources shares are owned by institutional investors. 1.1% of Eastman Chemical shares are owned by company insiders. Comparatively, 6.6% of Trecora Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Eastman Chemical pays an annual dividend of $2.24 per share and has a dividend yield of 2.3%. Trecora Resources does not pay a dividend. Eastman Chemical pays out 32.5% of its earnings in the form of a dividend. Trecora Resources has increased its dividend for 6 consecutive years.
Volatility and Risk
Eastman Chemical has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Valuation & Earnings
This table compares Eastman Chemical and Trecora Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eastman Chemical||$9.01 billion||1.55||$854.00 million||$6.89||14.06|
|Trecora Resources||$212.40 million||1.59||$19.42 million||$0.13||106.54|
Eastman Chemical has higher revenue and earnings than Trecora Resources. Eastman Chemical is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Eastman Chemical and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Eastman Chemical and Trecora Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eastman Chemical presently has a consensus target price of $97.46, indicating a potential upside of 0.62%. Trecora Resources has a consensus target price of $15.33, indicating a potential upside of 10.71%. Given Trecora Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Trecora Resources is more favorable than Eastman Chemical.
Eastman Chemical beats Trecora Resources on 9 of the 17 factors compared between the two stocks.
Eastman Chemical Company Profile
Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.
Trecora Resources Company Profile
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
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