Reviewing Orbia Advance (OTCMKTS:MXCHY) & Celanese (NYSE:CE)

Orbia Advance (OTCMKTS:MXCHY) and Celanese (NYSE:CE) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Insider and Institutional Ownership

98.9% of Celanese shares are owned by institutional investors. 0.3% of Celanese shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Orbia Advance has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Celanese has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Orbia Advance and Celanese’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	2.21%	7.87%	2.14%
Celanese	-31.85%	9.87%	2.29%

Valuation & Earnings

This table compares Orbia Advance and Celanese”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	$7.51 billion	0.24	$145.00 million	N/A	N/A
Celanese	$10.28 billion	0.45	-$1.52 billion	($28.27)	-1.48

Orbia Advance has higher earnings, but lower revenue than Celanese.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Orbia Advance and Celanese, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	2	0	3.00
Celanese	3	11	7	0	2.19

Celanese has a consensus target price of $54.78, indicating a potential upside of 30.86%. Given Celanese’s higher possible upside, analysts plainly believe Celanese is more favorable than Orbia Advance.

Dividends

Orbia Advance pays an annual dividend of $0.03 per share and has a dividend yield of 1.7%. Celanese pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Celanese pays out -0.4% of its earnings in the form of a dividend.

Summary

Celanese beats Orbia Advance on 10 of the 14 factors compared between the two stocks.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

About Celanese

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.