Critical Contrast: Celanese (NYSE:CE) and Givaudan (OTCMKTS:GVDNY)

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

Earnings & Valuation

This table compares Givaudan and Celanese”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Givaudan	$8.42 billion	4.55	$1.24 billion	N/A	N/A
Celanese	$10.28 billion	0.42	-$1.52 billion	($28.27)	-1.41

Givaudan has higher earnings, but lower revenue than Celanese.

Analyst Ratings

This is a summary of recent recommendations for Givaudan and Celanese, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Givaudan	0	0	2	2	3.50
Celanese	3	11	7	0	2.19

Celanese has a consensus price target of $54.78, indicating a potential upside of 37.37%. Given Celanese’s higher probable upside, analysts plainly believe Celanese is more favorable than Givaudan.

Risk and Volatility

Givaudan has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Celanese has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Givaudan	N/A	N/A	N/A
Celanese	-31.85%	9.87%	2.29%

Insider and Institutional Ownership

0.0% of Givaudan shares are held by institutional investors. Comparatively, 98.9% of Celanese shares are held by institutional investors. 0.3% of Celanese shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. Celanese pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Celanese pays out -0.4% of its earnings in the form of a dividend.

Summary

Celanese beats Givaudan on 9 of the 15 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 Celanese

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.