Head to Head Comparison: SGL Carbon (OTCMKTS:SGLFF) & Tronox (NYSE:TROX)

SGL Carbon (OTCMKTS:SGLFF) and Tronox (NYSE:TROX) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Profitability

This table compares SGL Carbon and Tronox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SGL Carbon	N/A	N/A	N/A
Tronox	-9.78%	0.40%	0.15%

Valuation & Earnings

This table compares SGL Carbon and Tronox’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SGL Carbon	N/A	N/A	N/A	($4.10)	-1.48
Tronox	$3.45 billion	0.53	$497.00 million	($1.75)	-6.70

Tronox has higher revenue and earnings than SGL Carbon. Tronox is trading at a lower price-to-earnings ratio than SGL Carbon, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.7% of SGL Carbon shares are owned by institutional investors. Comparatively, 70.2% of Tronox shares are owned by institutional investors. 1.8% of Tronox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SGL Carbon and Tronox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SGL Carbon	0	0	3	0	3.00
Tronox	0	5	2	0	2.29

Tronox has a consensus target price of $14.63, indicating a potential upside of 24.68%. Given Tronox’s higher possible upside, analysts clearly believe Tronox is more favorable than SGL Carbon.

Summary

Tronox beats SGL Carbon on 7 of the 11 factors compared between the two stocks.

About SGL Carbon

SGL Carbon SE, together with its subsidiaries, manufactures and sells special graphite, carbon fibers, and composite products in Germany, rest of Europe, the United States, China, rest of Asia, and internationally. The company operates in four segments: Graphite Solutions, Process Technology, Carbon Fibers, and Composite Solutions. It offers products for automotive industries, including body and main parts; carbon-ceramic brake discs; body shell components; battery solutions; friction materials; chassis components; gas diffusion layers and bipolar plates; vanes and rotors; sealing materials; bearings and mechanical seals; commutator discs and carbon brushes; and temperature management materials, as well as other products. The company also provides composite solutions, such as energy storage systems, lead springs, skin and structure, thermoplastic profiles, and friction components; fuel cells for energy conversion, as well as for passenger cars and trains, and ferries for zero emission mobile applications; and carbon fiber-reinforced plastics and composites for aerospace industry. In addition, it offers isostatic graphite to produce compound semiconductor layers; silicon carbide coatings for semiconductor production; and heat exchangers, columns, quenchers, pumps, components and assemblies, and pipings, as well as sealing materials for process technology. SGL Carbon SE was founded in 1878 and is headquartered in Wiesbaden, Germany.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company's products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.