Tronox (NYSE:TROX) and Polydex Pharmaceuticals (OTCMKTS:POLXF) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
71.9% of Tronox shares are held by institutional investors. 1.2% of Tronox shares are held by insiders. Comparatively, 12.9% of Polydex Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Tronox and Polydex Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tronox currently has a consensus target price of $23.00, indicating a potential upside of 100.87%. Given Tronox’s higher possible upside, equities research analysts clearly believe Tronox is more favorable than Polydex Pharmaceuticals.
This table compares Tronox and Polydex Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Tronox pays an annual dividend of $0.18 per share and has a dividend yield of 1.6%. Polydex Pharmaceuticals does not pay a dividend. Tronox pays out -66.7% of its earnings in the form of a dividend.
Risk and Volatility
Tronox has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500. Comparatively, Polydex Pharmaceuticals has a beta of -0.62, suggesting that its share price is 162% less volatile than the S&P 500.
Valuation & Earnings
This table compares Tronox and Polydex Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tronox||$1.70 million||827.77||-$285.00 million||($0.27)||-42.41|
|Polydex Pharmaceuticals||$5.28 million||0.58||$450,000.00||N/A||N/A|
Polydex Pharmaceuticals has higher revenue and earnings than Tronox.
Tronox Company Profile
Tronox Limited produces and markets titanium bearing mineral sands and titanium dioxide (TiO2) pigment in North America, Europe, South Africa, and the Asia-Pacific region. The company engages in the exploration, mining, and beneficiation of mineral sands deposits. It also produces titanium feedstock, including chloride slag, slag fines, rutile, synthetic rutile, leucoxene, titanium slag, and ilmenite, as well as pig iron and zircon; and suplies and markets TiO2 under the TRONOX brand name, which is used in the manufacture of paint and other coatings, and plastics and paper, as well as in various other applications comprising inks, fibers, rubber, food, cosmetics, and pharmaceuticals. In addition, the company manufactures and markets electrolytic manganese dioxide primarily for battery materials; and specialty boron products for semiconductors, pharmaceuticals, high-performance fibers, specialty ceramics, and epoxies, as well as igniter formulations. Tronox Limited was founded in 2005 and is based in Stamford, Connecticut.
Polydex Pharmaceuticals Company Profile
Polydex Pharmaceuticals Limited, through its subsidiaries, manufactures bulk pharmaceutical intermediates for the veterinary pharmaceutical industry worldwide. It also develops, manufactures, and markets biotechnology-based products for the human pharmaceutical market. The company primarily offers dextran and derivative products, including Iron Dextran, a derivative of dextran that is injected into pigs at birth as a treatment for anemia; and dextran sulphate, a specialty chemical derivative of dextran used in biotechnology applications and the pharmaceutical industry. It also provides ferric hydroxide and hydrogenated dextran to Sparhawk Laboratories Inc. In addition, the company develops Ushercell, a high molecular weight cellulose sulphate for topical vaginal use primarily in the prevention and transmission of AIDS and other sexually transmitted diseases, as well as unplanned pregnancies; and Usherdex 4, a low molecular weight dextran product for the treatment of cystic fibrosis, a genetic disease. Polydex Pharmaceuticals Limited sells its iron dextran primarily to independent distributors and wholesalers primarily in Europe, the Far East, South America, and Canada; and Dextran Sulphate to independent distributors or companies in the United States and Europe for analytical applications. The company was formerly known as Polydex Chemicals Limited and changed its name to Polydex Pharmaceuticals Limited in March 1984. Polydex Pharmaceuticals Limited was founded in 1966 and is based in Toronto, Canada.
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