Stepan (NYSE: SCL) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it compare to its competitors? We will compare Stepan to similar businesses based on the strength of its risk, analyst recommendations, earnings, dividends, valuation, institutional ownership and profitability.
This is a breakdown of current recommendations and price targets for Stepan and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stepan currently has a consensus price target of $36.25, indicating a potential downside of 59.01%. As a group, “Specialty Chemicals” companies have a potential downside of 2.61%. Given Stepan’s competitors higher probable upside, analysts plainly believe Stepan has less favorable growth aspects than its competitors.
Volatility and Risk
Stepan has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Stepan’s competitors have a beta of 1.59, indicating that their average stock price is 59% more volatile than the S&P 500.
Stepan pays an annual dividend of $0.82 per share and has a dividend yield of 0.9%. Stepan pays out 21.5% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 27.3% of their earnings in the form of a dividend. Stepan has increased its dividend for 49 consecutive years.
This table compares Stepan and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
62.5% of Stepan shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 13.1% of Stepan shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Stepan and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Stepan||$1.83 billion||$207.56 million||23.21|
|Stepan Competitors||$1.96 billion||$301.94 million||16.79|
Stepan’s competitors have higher revenue and earnings than Stepan. Stepan is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Stepan beats its competitors on 8 of the 15 factors compared.
Stepan Company produces specialty and intermediate chemicals, which are sold to other manufacturers and used in a range of end products. The Company operates through three segments: Surfactants, Polymers and Specialty Products. The Company’s principal markets include manufacturers of cleaning and washing compounds (including detergents, shampoos, fabric softeners, toothpastes and household cleaners), paints, cosmetics, food, beverages, nutritional supplements, agricultural products and plastics. Its Surfactants segment offers products, which are principal ingredients in consumer and industrial cleaning products, such as detergents for washing clothes, dishes, carpets, floors and walls, as well as shampoos and body washes. Its Polymers segment includes polyurethane polyols, polyester resins and phthalic anhydride. Its Specialty Products segment includes flavors, emulsifiers and solubilizers used in food, flavoring, nutritional supplement and pharmaceutical applications.
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