Contrasting Elementis (OTCMKTS:ELMTY) & Sensient Technologies (NYSE:SXT)

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

Earnings & Valuation

This table compares Sensient Technologies and Elementis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensient Technologies	$1.60 billion	2.60	$124.67 million	$3.27	29.86
Elementis	$738.30 million	1.61	-$47.80 million	N/A	N/A

Sensient Technologies has higher revenue and earnings than Elementis.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sensient Technologies and Elementis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensient Technologies	0	2	1	0	2.33
Elementis	0	0	0	0	0.00

Sensient Technologies currently has a consensus price target of $110.00, suggesting a potential upside of 12.65%. Given Sensient Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Sensient Technologies is more favorable than Elementis.

Dividends

Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.7%. Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Sensient Technologies pays out 50.2% of its earnings in the form of a dividend.

Volatility & Risk

Sensient Technologies has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Elementis has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Profitability

This table compares Sensient Technologies and Elementis’ 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%
Elementis	N/A	N/A	N/A

Insider and Institutional Ownership

90.9% of Sensient Technologies shares are owned by institutional investors. 1.2% of Sensient Technologies shares 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.

Summary

Sensient Technologies beats Elementis on 13 of the 14 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 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.