CBT vs. ESI, OEC, VVV, ASH, HMY, NEU, BCPC, AGI, ATI, and ALTM
Should you be buying Cabot stock or one of its competitors? The main competitors of Cabot include Element Solutions (ESI), Orion (OEC), Valvoline (VVV), Ashland (ASH), Harmony Gold Mining (HMY), NewMarket (NEU), Balchem (BCPC), Alamos Gold (AGI), ATI (ATI), and Arcadium Lithium (ALTM). These companies are all part of the "basic materials" sector.
Cabot (NYSE:CBT) and Element Solutions (NYSE:ESI) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, media sentiment, community ranking, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Cabot pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. Element Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Cabot pays out 20.8% of its earnings in the form of a dividend. Element Solutions pays out 65.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cabot is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cabot has a net margin of 11.24% compared to Element Solutions' net margin of 5.06%. Cabot's return on equity of 25.52% beat Element Solutions' return on equity.
Cabot presently has a consensus price target of $90.17, indicating a potential downside of 3.66%. Element Solutions has a consensus price target of $25.60, indicating a potential upside of 7.34%. Given Element Solutions' stronger consensus rating and higher possible upside, analysts plainly believe Element Solutions is more favorable than Cabot.
93.2% of Cabot shares are owned by institutional investors. Comparatively, 92.3% of Element Solutions shares are owned by institutional investors. 3.1% of Cabot shares are owned by insiders. Comparatively, 7.9% of Element Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Cabot has higher revenue and earnings than Element Solutions. Cabot is trading at a lower price-to-earnings ratio than Element Solutions, indicating that it is currently the more affordable of the two stocks.
Cabot received 346 more outperform votes than Element Solutions when rated by MarketBeat users. Likewise, 61.90% of users gave Cabot an outperform vote while only 38.24% of users gave Element Solutions an outperform vote.
Cabot has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Element Solutions has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
In the previous week, Cabot and Cabot both had 4 articles in the media. Element Solutions' average media sentiment score of 0.45 beat Cabot's score of 0.21 indicating that Element Solutions is being referred to more favorably in the news media.
Summary
Cabot beats Element Solutions on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CBT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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