Venator Materials (NYSE:VNTRQ) vs. DSM-Firmenich (OTCMKTS:KDSKF) Critical Contrast

DSM-Firmenich (OTCMKTS:KDSKF) and Venator Materials (NYSE:VNTRQ) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Institutional and Insider Ownership

33.4% of DSM-Firmenich shares are held by institutional investors. Comparatively, 0.5% of Venator Materials shares are held by institutional investors. 41.7% of Venator Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DSM-Firmenich and Venator Materials’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSM-Firmenich	N/A	N/A	N/A	$0.95	45.38
Venator Materials	$2.17 billion	31.51	-$188.00 million	($3.28)	-195.12

DSM-Firmenich has higher earnings, but lower revenue than Venator Materials. Venator Materials is trading at a lower price-to-earnings ratio than DSM-Firmenich, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DSM-Firmenich and Venator Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DSM-Firmenich	N/A	N/A	N/A
Venator Materials	-18.19%	-47.15%	-8.22%

Analyst Ratings

This is a summary of recent recommendations and price targets for DSM-Firmenich and Venator Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSM-Firmenich	1	1	1	0	2.00
Venator Materials	0	0	0	0	N/A

Summary

DSM-Firmenich beats Venator Materials on 7 of the 9 factors compared between the two stocks.

About DSM-Firmenich

DSM the Life Sciences and Materials Sciences Company Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSMs products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM has annual net sales of EUR 9.3 billion and employs some 23,500 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam.

About Venator Materials

Venator Materials PLC, together with its subsidiaries, manufactures and markets chemical products in the United Kingdom and internationally. It operates in two segments, Titanium Dioxide and Performance Additives. The Titanium Dioxide segment offers titanium dioxide (TiO2), such as rutile, anatase, and ultrafine TiO2 products for use in coatings, printing inks, PVC window frames, plastic masterbatches, cosmetics, pharmaceuticals, food, polyester and polyamide fibers, catalysts, and cosmetics products. The Performance Additives segment provides barium and zinc additives for use in coatings, films, and paper and glass fiber reinforced plastics; and colored inorganic pigments comprising iron oxides, ultramarines, specialty inorganic chemicals, and driers for construction, coatings, plastics, cosmetics, inks, catalyst, and laminates. This segment also offers wood protection chemicals for use in residential and commercial applications to prolong the life through protection from decay, fungal, and insect attack; timber treatment chemicals for use in decking, fencing, and other residential outdoor wood structures; and industrial construction products for use in telephone poles, and salt water piers and pilings. The company was incorporated in 2017 and is based in Stockton-On-Tees, the United Kingdom. On May 14, 2023, Venator Materials PLC, along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.