Kronos Worldwide (NYSE: KRO) and BioAmber (NYSE:BIOA) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

15.4% of Kronos Worldwide shares are held by institutional investors. Comparatively, 37.4% of BioAmber shares are held by institutional investors. 0.1% of Kronos Worldwide shares are held by company insiders. Comparatively, 8.3% of BioAmber shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kronos Worldwide and BioAmber, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kronos Worldwide 1 1 0 0 1.50
BioAmber 0 1 0 0 2.00

Kronos Worldwide currently has a consensus price target of $17.00, suggesting a potential downside of 19.92%. BioAmber has a consensus price target of $3.00, suggesting a potential upside of 788.36%. Given BioAmber’s stronger consensus rating and higher probable upside, analysts plainly believe BioAmber is more favorable than Kronos Worldwide.

Dividends

Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. BioAmber does not pay a dividend. Kronos Worldwide pays out 24.9% of its earnings in the form of a dividend.

Risk and Volatility

Kronos Worldwide has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, BioAmber has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kronos Worldwide and BioAmber’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kronos Worldwide $1.50 billion 1.64 $240.60 million $2.41 8.81
BioAmber $10.54 million 1.19 -$24.98 million ($0.80) -0.42

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kronos Worldwide 18.57% 24.73% 9.09%
BioAmber -221.82% -56.55% -21.56%

Summary

Kronos Worldwide beats BioAmber on 8 of the 14 factors compared between the two stocks.

About Kronos Worldwide

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.

About BioAmber

BioAmber Inc. (BioAmber), formerly DNP Green Technology, Inc., is an industrial biotechnology company, which produces sustainable chemicals. The Company’s technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstocks into sustainable chemicals that are replacements for petroleum-derived chemicals, which are used in a range of everyday products, including plastics, food additives and personal care products. Its geographical segments include Europe and North America. Its product pipeline includes the derivatives of bio-succinic acid, such as 1,4 Butanediol (1,4 BDO) and tetrahydrofuran (THF), and succinic acid-based polyesters, and C6 building block chemicals, such as adipic acid, caprolactam and hexamethylenediamine (HMDA). Its products are used in various applications, including polyurethanes, resins and coatings, de-icing and coolant solutions, fine chemicals, lubricants, carpets, engineering plastics and artificial leather products.

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