Head to Head Analysis: Element Solutions (ESI) versus Its Rivals

Element Solutions (NYSE:ESI) is one of 296 public companies in the “Chemicals” industry, but how does it compare to its rivals? We will compare Element Solutions to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Insider and Institutional Ownership

92.3% of Element Solutions shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 6.2% of Element Solutions shares are held by insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Element Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Element Solutions pays out 37.6% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Element Solutions and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Element Solutions	0	2	7	4	3.15
Element Solutions Competitors	3272	12238	14147	520	2.39

Element Solutions currently has a consensus price target of $46.36, suggesting a potential upside of 39.29%. As a group, “Chemicals” companies have a potential upside of 6.70%. Given Element Solutions’ stronger consensus rating and higher probable upside, equities analysts clearly believe Element Solutions is more favorable than its rivals.

Risk and Volatility

Element Solutions has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Element Solutions’ rivals have a beta of 0.94, meaning that their average stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Element Solutions and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Element Solutions	$2.55 billion	$190.80 million	39.16
Element Solutions Competitors	$6.34 billion	$229.42 million	19.99

Element Solutions’ rivals have higher revenue and earnings than Element Solutions. Element Solutions is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Element Solutions and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Element Solutions	5.87%	15.45%	7.67%
Element Solutions Competitors	-54.14%	-0.61%	-1.37%

Summary

Element Solutions beats its rivals on 10 of the 15 factors compared.

Element Solutions Company Profile

Element Solutions Inc. is a specialty chemicals company that develops and supplies materials used in electronics manufacturing and a range of industrial processes. Its products support the production of printed circuit boards, semiconductors and electronic assemblies, as well as metal plating, surface finishing and other applications. The company’s products help customers treat, protect and enhance surfaces and materials during manufacturing. Its portfolio includes process chemicals, coatings and related technologies sold under established brands, including MacDermid, Alpha and Enthone.