CBT vs. ESI, OEC, CRS, VVV, NEU, ALTM, ICL, BCPC, ASH, and HMY
Should you be buying Cabot stock or one of its competitors? The main competitors of Cabot include Element Solutions (ESI), Orion (OEC), Carpenter Technology (CRS), Valvoline (VVV), NewMarket (NEU), Arcadium Lithium (ALTM), ICL Group (ICL), Balchem (BCPC), Ashland (ASH), and Harmony Gold Mining (HMY). 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 investment? We will compare the two businesses based on the strength of their dividends, community ranking, media sentiment, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Cabot has a net margin of 11.51% compared to Element Solutions' net margin of 5.62%. Cabot's return on equity of 26.21% beat Element Solutions' return on equity.
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 currently has a consensus price target of $93.67, suggesting a potential downside of 7.14%. Element Solutions has a consensus price target of $26.00, suggesting a potential upside of 8.00%. Given Element Solutions' stronger consensus rating and higher probable upside, analysts clearly 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 company insiders. Comparatively, 7.9% of Element Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Cabot pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Element Solutions pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Cabot pays out 20.3% of its earnings in the form of a dividend. Element Solutions pays out 59.3% 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 received 345 more outperform votes than Element Solutions when rated by MarketBeat users. Likewise, 61.92% of users gave Cabot an outperform vote while only 39.62% of users gave Element Solutions an outperform vote.
In the previous week, Element Solutions had 8 more articles in the media than Cabot. MarketBeat recorded 14 mentions for Element Solutions and 6 mentions for Cabot. Cabot's average media sentiment score of 0.64 beat Element Solutions' score of 0.62 indicating that Cabot is being referred to more favorably in the media.
Cabot has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Element Solutions has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Summary
Cabot beats Element Solutions on 12 of the 20 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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