Resonac (OTCMKTS:SHWDY – Get Free Report) and Tronox (NYSE:TROX – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.
Institutional and Insider Ownership
73.4% of Tronox shares are owned by institutional investors. 1.7% of Tronox shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Resonac and Tronox”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Resonac | $8.78 billion | 0.81 | $350.37 million | $0.20 | 191.25 |
| Tronox | $3.07 billion | 0.22 | -$48.00 million | ($2.05) | -2.03 |
Resonac has higher revenue and earnings than Tronox. Tronox is trading at a lower price-to-earnings ratio than Resonac, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Resonac and Tronox, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Resonac | 0 | 0 | 0 | 1 | 4.00 |
| Tronox | 3 | 3 | 5 | 0 | 2.18 |
Tronox has a consensus price target of $5.18, indicating a potential upside of 24.22%. Given Tronox’s higher possible upside, analysts plainly believe Tronox is more favorable than Resonac.
Risk & Volatility
Resonac has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Tronox has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Profitability
This table compares Resonac and Tronox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Resonac | 0.43% | 3.94% | 1.26% |
| Tronox | -11.39% | -8.10% | -2.23% |
Summary
Resonac beats Tronox on 10 of the 15 factors compared between the two stocks.
About Resonac
Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.
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.
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