Huntsman (NYSE:HUN) and Loop Industries (NASDAQ:LOOP) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

Huntsman pays an annual dividend of $0.65 per share and has a dividend yield of 2.9%. Loop Industries does not pay a dividend. Huntsman pays out 19.5% of its earnings in the form of a dividend.

Volatility & Risk

Huntsman has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Loop Industries has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Huntsman and Loop Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntsman 1 4 6 0 2.45
Loop Industries 0 0 1 0 3.00

Huntsman currently has a consensus target price of $27.36, indicating a potential upside of 21.29%. Loop Industries has a consensus target price of $12.00, indicating a potential downside of 29.74%. Given Huntsman’s higher probable upside, analysts clearly believe Huntsman is more favorable than Loop Industries.

Profitability

This table compares Huntsman and Loop Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntsman -1.37% 18.68% 6.44%
Loop Industries N/A -292.60% -117.38%

Institutional & Insider Ownership

74.6% of Huntsman shares are held by institutional investors. Comparatively, 4.9% of Loop Industries shares are held by institutional investors. 5.6% of Huntsman shares are held by company insiders. Comparatively, 55.1% of Loop Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Huntsman and Loop Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntsman $9.38 billion 0.55 $337.00 million $3.34 6.75
Loop Industries N/A N/A -$17.54 million ($0.39) -43.79

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

Summary

Huntsman beats Loop Industries on 11 of the 15 factors compared between the two stocks.

Huntsman Company Profile

Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide. The company operates in four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines, maleic anhydrides, surfactants, linear alkyl-benzene, ethylene glycol, ethylene oxide, olefins, and technology licenses. The Advanced Materials segment offers epoxy, acrylic, and polyurethane-based polymers formulations; high performance thermoset resins and curing agents; and base liquid and solid resins. The Textile Effects segment provides textile chemicals, dyes, and inks. The company's products are used in a range of applications, including adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

Loop Industries Company Profile

Loop Industries, Inc. focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It re-polymerized monomers into virgin-quality PET plastic for use in food-grade plastic packaging, such as water and soda bottles, as well as polyester fibers for textile applications. The company was founded in 2014 and is based in Terrebonne, Canada.

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