Trinseo (TSE) and Eastman Chemical (EMN) Head to Head Analysis

Trinseo (NYSE: TSE) and Eastman Chemical (NYSE:EMN) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

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This is a breakdown of recent recommendations for Trinseo and Eastman Chemical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 4 0 2.67
Eastman Chemical 0 7 8 0 2.53

Trinseo presently has a consensus price target of $90.00, suggesting a potential upside of 17.49%. Eastman Chemical has a consensus price target of $102.86, suggesting a potential downside of 4.18%. Given Trinseo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Trinseo is more favorable than Eastman Chemical.

Earnings and Valuation

This table compares Trinseo and Eastman Chemical’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trinseo $4.45 billion 0.75 $328.30 million $8.13 9.42
Eastman Chemical $9.55 billion 1.61 $1.38 billion $7.61 14.11

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

Profitability

This table compares Trinseo and Eastman Chemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trinseo 7.38% 62.52% 13.82%
Eastman Chemical 15.44% 22.02% 6.98%

Risk and Volatility

Trinseo has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Eastman Chemical has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

98.6% of Trinseo shares are held by institutional investors. Comparatively, 85.5% of Eastman Chemical shares are held by institutional investors. 0.3% of Trinseo shares are held by insiders. Comparatively, 1.1% of Eastman Chemical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 1.9%. Eastman Chemical pays an annual dividend of $2.24 per share and has a dividend yield of 2.1%. Trinseo pays out 17.7% of its earnings in the form of a dividend. Eastman Chemical pays out 29.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eastman Chemical has increased its dividend for 6 consecutive years. Eastman Chemical is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Eastman Chemical beats Trinseo on 9 of the 17 factors compared between the two stocks.

About Trinseo

Trinseo S.A., a materials company, manufactures and markets synthetic rubber, latex binders, and plastic products in Europe, the United States, the Asia Pacific, and internationally. The company operates through Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks, and Americas Styrenics segments. The Latex Binders segment offers styrene-butadiene, styrene-acrylate, vinylidene chloride, and butadiene-methacrylate latex products for the commercial and niche carpet markets, as well as performance latex products for the adhesive, building and construction, and technical textile paper markets. The Synthetic Rubber segment provides styrene-butadiene rubber, emulsion styrene-butadiene rubber, nickel polybutadiene rubber, and neodymium polybutadiene rubber for use in tires, modifiers, and technical rubber products. The Performance Plastics segment offers engineered compounds and blend products for the automotive, consumer electronics, medical, electrical, and lighting markets. The Basic Plastics segment provides polystyrene, polycarbonate, acrylonitrile-butadiene-styrene, and styrene-acrylonitrile for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials. The Feedstocks segment offers styrene monomer, a basic building block of plastics. The Americas Styrenics segment provides styrene and polystyrene, as well as general purpose polystyrenes, high heat, high impact resin, and STYRON A-TECH polystyrene products. The company's products are also used in carpet and artificial turf backing, coated and specialty paper, and other markets. Trinseo S.A. was founded in 2010 and is headquartered in Berwyn, Pennsylvania.

About Eastman Chemical

Eastman Chemical Company manufactures and sells materials, specialty additives, chemicals, and fibers in the United States and internationally. The company's Additives & Functional Products segment offers specialty coalescents, specialty and commodity solvents, paint additives, and specialty polymers; hydrocarbon and rosin resins; insoluble sulfur and antidegradant rubber additives; performance resins and amine derivative-based building blocks; heat transfer and aviation fluids; formic acid-based solutions; and metam-based soil fumigants, thiram and ziram based fungicides, and plant growth regulators. Its products are used in transportation, consumables, building and construction, industrial applications, animal nutrition, care chemicals, crop protection, and energy markets. Its Advanced Materials segment provides copolyesters, cellulose esters, polyvinyl butyral (PVB) sheets, specialty (PVB) intermediates, and window film and protective film, and aftermarket applied film products for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The company's Chemical Intermediates segment offers Olefin derivatives, acetyl derivatives, ethylene, and commodity solvents; primary non-phthalate and phthala plasticizers, and a range of niche non- phthalate plasticizers; and methylamines and salts higher amines and solvents. Its Fibers segment manufactures and sells cellulose acetate tow for use in filtration media primarily cigarette filters; triacetin, cellulose acetate flake, and acetyl raw materials for other acetate fiber producers; and natural, acetate, and polyester yarn, as well as solution-dyed acetate yarn for use in apparel, home furnishings, and industrial fabrics. The company also offers aviation turbine engine oil; wet-laid nonwovens; and specialty films. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.

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