Orion (NYSE:OEC) and Elementis (OTCMKTS:ELMTY) Critical Analysis

Orion (NYSE:OEC) and Elementis (OTCMKTS:ELMTY) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Risk and Volatility

Orion has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Elementis has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Institutional & Insider Ownership

94.3% of Orion shares are held by institutional investors. 2.7% of Orion shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Orion pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. Elementis pays an annual dividend of $0.14 per share and has a dividend yield of 1.7%. Orion pays out -6.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Orion and Elementis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion	$1.81 billion	0.24	-$70.10 million	($1.26)	-6.00
Elementis	$597.50 million	1.93	-$45.50 million	N/A	N/A

Elementis has lower revenue, but higher earnings than Orion.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Orion and Elementis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion	3	2	0	0	1.40
Elementis	0	0	0	0	0.00

Orion presently has a consensus target price of $5.75, indicating a potential downside of 23.97%. Given Orion’s stronger consensus rating and higher possible upside, analysts plainly believe Orion is more favorable than Elementis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion	-3.88%	6.52%	1.42%
Elementis	N/A	N/A	N/A

Summary

Orion beats Elementis on 9 of the 13 factors compared between the two stocks.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

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.