Valhi (VHI) versus Its Rivals Head-To-Head Analysis

Valhi (NYSE:VHI) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it contrast to its rivals? We will compare Valhi to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Valhi and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Valhi	$2.08 billion	-$57.60 million	334.36
Valhi Competitors	$6.36 billion	$222.31 million	10.00

Valhi’s rivals have higher revenue and earnings than Valhi. Valhi 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.

Risk & Volatility

Valhi has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Valhi’s rivals have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Valhi and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valhi	1	0	0	0	1.00
Valhi Competitors	3250	12221	14141	519	2.40

As a group, “Chemicals” companies have a potential upside of 8.09%. Given Valhi’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Valhi has less favorable growth aspects than its rivals.

Dividends

Valhi pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Valhi pays out 640.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Valhi lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

3.8% of Valhi shares are held by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are held by institutional investors. 0.2% of Valhi shares are held by company insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valhi	-2.36%	-2.77%	-1.45%
Valhi Competitors	-59.67%	0.26%	-1.43%

Summary

Valhi rivals beat Valhi on 12 of the 15 factors compared.

Valhi Company Profile

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.