Head to Head Analysis: STR (STRI) vs. Raven Industries (RAVN)

STR (OTCMKTS: STRI) and Raven Industries (NASDAQ:RAVN) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

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This table compares STR and Raven Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STR $13.54 million 0.37 -$5.10 million N/A N/A
Raven Industries $377.32 million 3.58 $41.02 million $1.14 33.07

Raven Industries has higher revenue and earnings than STR.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for STR and Raven Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STR 0 0 0 0 N/A
Raven Industries 0 1 2 0 2.67

Raven Industries has a consensus target price of $35.00, suggesting a potential downside of 7.16%. Given Raven Industries’ higher possible upside, analysts clearly believe Raven Industries is more favorable than STR.

Risk & Volatility

STR has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Raven Industries has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares STR and Raven Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STR -37.72% -17.99% -15.04%
Raven Industries 10.87% 15.29% 12.98%

Insider and Institutional Ownership

75.0% of Raven Industries shares are held by institutional investors. 10.3% of STR shares are held by company insiders. Comparatively, 1.8% of Raven Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Raven Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. STR does not pay a dividend. Raven Industries pays out 45.6% of its earnings in the form of a dividend.

Summary

Raven Industries beats STR on 11 of the 13 factors compared between the two stocks.

About STR

STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.

About Raven Industries

Raven Industries, Inc., a technology company, provides various products to customers in the industrial, agricultural, geomembrane, construction, and aerospace/defense markets worldwide. The company operates in three segments: Applied Technology, Engineered Films, and Aerostar. The Applied Technology segment designs, manufactures, sells, and services precision agriculture products and information management tools that enable growers to enhance farm yields. Its products include field computers, application controls, GPS-guidance and assisted-steering systems, automatic boom controls, injection systems, and planter and seeder controls, as well as Slingshot, an integrated real-time kinematic and information platform; and services comprise high-speed in-field Internet connectivity and cloud-based data management. This segment sells its products to original equipment manufacturers and through aftermarket distribution partners. The Engineered Films segment produces plastic films and sheeting for geomembrane, agricultural, construction, and industrial applications. It sells its products directly to end-customers and through independent third-party distributors. The Aerostar segment offers high-altitude balloons, tethered aerostats, and radar processing systems to provide research, communications, and situational awareness to government and commercial customers in the aerospace/defense, radar, and lighter-than-air markets. Raven Industries, Inc. was founded in 1956 and is headquartered in Sioux Falls, South Dakota.

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