Financial Analysis: Elementis (OTCMKTS:ELMTY) vs. Givaudan (OTCMKTS:GVDNY)

Givaudan (OTCMKTS:GVDNY) and Elementis (OTCMKTS:ELMTY) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares Givaudan and Elementis”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Givaudan	$8.42 billion	4.94	$1.24 billion	N/A	N/A
Elementis	$738.30 million	1.69	-$47.80 million	N/A	N/A

Givaudan has higher revenue and earnings than Elementis.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Givaudan and Elementis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Givaudan	0	2	0	1	2.67
Elementis	0	0	0	0	0.00

Institutional and Insider Ownership

0.0% of Givaudan shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Givaudan has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Elementis has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares Givaudan and Elementis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Givaudan	N/A	N/A	N/A
Elementis	N/A	N/A	N/A

Dividends

Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%.

Summary

Givaudan beats Elementis on 8 of the 8 factors compared between the two stocks.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.

About Elementis

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.