Sigma-Aldrich (NASDAQ: SIAL) and Kronos Worldwide (NYSE:KRO) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Sigma-Aldrich and Kronos Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sigma-Aldrich 16.22% 13.72% 10.47%
Kronos Worldwide 18.57% 24.73% 9.09%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sigma-Aldrich and Kronos Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sigma-Aldrich 0 0 0 0 N/A
Kronos Worldwide 1 1 0 0 1.50

Kronos Worldwide has a consensus target price of $17.00, indicating a potential downside of 14.18%. Given Kronos Worldwide’s higher possible upside, analysts clearly believe Kronos Worldwide is more favorable than Sigma-Aldrich.

Valuation and Earnings

This table compares Sigma-Aldrich and Kronos Worldwide’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sigma-Aldrich N/A N/A N/A N/A N/A
Kronos Worldwide $1.50 billion 1.53 $240.60 million $2.41 8.22

Kronos Worldwide has higher revenue and earnings than Sigma-Aldrich.

Institutional & Insider Ownership

13.9% of Kronos Worldwide shares are owned by institutional investors. 0.1% of Kronos Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Sigma-Aldrich does not pay a dividend. Kronos Worldwide pays out 24.9% of its earnings in the form of a dividend. Kronos Worldwide has increased its dividend for 41 consecutive years.

Summary

Kronos Worldwide beats Sigma-Aldrich on 8 of the 10 factors compared between the two stocks.

Sigma-Aldrich Company Profile

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

Kronos Worldwide Company Profile

Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.

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