KMG Chemicals (NYSE: KMG) and Terravia Holdings (NASDAQ:TVIA) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
This is a summary of current recommendations and price targets for KMG Chemicals and Terravia Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KMG Chemicals presently has a consensus target price of $37.00, suggesting a potential downside of 32.91%. Terravia Holdings has a consensus target price of $1.50, suggesting a potential upside of 3,659.40%. Given Terravia Holdings’ higher probable upside, analysts clearly believe Terravia Holdings is more favorable than KMG Chemicals.
Valuation & Earnings
This table compares KMG Chemicals and Terravia Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KMG Chemicals||$312.48 million||2.10||$51.47 million||$1.80||30.64|
KMG Chemicals has higher revenue and earnings than Terravia Holdings. Terravia Holdings is trading at a lower price-to-earnings ratio than KMG Chemicals, indicating that it is currently the more affordable of the two stocks.
This table compares KMG Chemicals and Terravia Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
KMG Chemicals has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Terravia Holdings has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
KMG Chemicals pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Terravia Holdings does not pay a dividend. KMG Chemicals pays out 6.7% of its earnings in the form of a dividend.
Institutional & Insider Ownership
73.7% of KMG Chemicals shares are owned by institutional investors. Comparatively, 43.4% of Terravia Holdings shares are owned by institutional investors. 6.9% of KMG Chemicals shares are owned by company insiders. Comparatively, 10.1% of Terravia Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
KMG Chemicals beats Terravia Holdings on 9 of the 13 factors compared between the two stocks.
KMG Chemicals Company Profile
KMG Chemicals, Inc. manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals. The Company operates through its subsidiaries, KMG Electronic Chemicals, Inc. (KMG EC), KMG-Bernuth, Inc. (KMG Bernuth) and KMG Val-Tex, LLC (Val-Tex). The Company’s Electronic chemicals business sells high purity and ultra-purity wet process chemicals primarily to the semiconductor industry. The Company’s Other chemicals segment includes its industrial lubricants business and wood treating chemicals business. The Company’s products sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals.
Terravia Holdings Company Profile
Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.
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