Brenntag (OTCMKTS:BNTGY) versus Enlightify (NYSE:ENFY) Financial Review

Brenntag (OTCMKTS:BNTGY) and Enlightify (NYSE:ENFY) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Brenntag has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Enlightify has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Enlightify shares are held by institutional investors. 14.0% of Enlightify shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Brenntag and Enlightify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brenntag	2.62%	9.19%	3.69%
Enlightify	-22.98%	-18.78%	-11.03%

Valuation & Earnings

This table compares Brenntag and Enlightify”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brenntag	$17.57 billion	0.44	$580.22 million	$0.64	16.72
Enlightify	$79.21 million	0.02	-$28.41 million	($1.05)	-0.08

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Brenntag and Enlightify, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brenntag	2	6	0	0	1.75
Enlightify	1	0	0	0	1.00

Brenntag presently has a consensus target price of $12.80, indicating a potential upside of 19.63%. Given Brenntag’s stronger consensus rating and higher probable upside, analysts plainly believe Brenntag is more favorable than Enlightify.

Summary

Brenntag beats Enlightify on 10 of the 13 factors compared between the two stocks.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.

About Enlightify

Enlightify, Inc. engages in the research, development, production, and sale of various types of fertilizers and agricultural products. It operates through the following segments: Jinong, Gufeng, and Yuxing. The Jinong segment includes fertilizer products, with focus on humic acid-based compound fertilizer. The Gufeng segment refers to the compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer. The Yuxing segment develops and produces agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. The company was founded by Tao Li on February 6, 1987 and is headquartered in Xi’an, China.