Sensient Technologies (NYSE:SXT) vs. SIKA (OTCMKTS:SXYAY) Head-To-Head Contrast

Sensient Technologies (NYSE:SXT) and SIKA (OTCMKTS:SXYAY) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Sensient Technologies and SIKA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensient Technologies	0	1	2	0	2.67
SIKA	1	0	2	2	3.00

Sensient Technologies currently has a consensus price target of $110.00, suggesting a potential upside of 15.78%. Given Sensient Technologies’ higher possible upside, analysts clearly believe Sensient Technologies is more favorable than SIKA.

Valuation & Earnings

This table compares Sensient Technologies and SIKA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensient Technologies	$1.56 billion	2.59	$124.67 million	$3.17	29.97
SIKA	$13.36 billion	2.73	$1.41 billion	N/A	N/A

SIKA has higher revenue and earnings than Sensient Technologies.

Profitability

This table compares Sensient Technologies and SIKA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensient Technologies	8.56%	12.56%	6.60%
SIKA	N/A	N/A	N/A

Dividends

Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.7%. SIKA pays an annual dividend of $0.09 per share and has a dividend yield of 0.4%. Sensient Technologies pays out 51.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

90.9% of Sensient Technologies shares are owned by institutional investors. 1.2% of Sensient Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Sensient Technologies beats SIKA on 7 of the 13 factors compared between the two stocks.

About Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.