VHI vs. NL, KRO, LWLG, TMC, PPTA, ODC, AVD, CMP, VZLA, and MUX
Should you be buying Valhi stock or one of its competitors? The main competitors of Valhi include NL Industries (NL), Kronos Worldwide (KRO), Lightwave Logic (LWLG), TMC the metals (TMC), Perpetua Resources (PPTA), Oil-Dri Co. of America (ODC), American Vanguard (AVD), Compass Minerals International (CMP), Vizsla Silver (VZLA), and McEwen Mining (MUX). These companies are all part of the "basic materials" sector.
NL Industries (NYSE:NL) and Valhi (NYSE:VHI) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, community ranking, dividends, institutional ownership, valuation, earnings, risk, analyst recommendations and media sentiment.
NL Industries currently has a consensus target price of $5.00, suggesting a potential downside of 41.11%. Given Valhi's higher probable upside, analysts plainly believe NL Industries is more favorable than Valhi.
NL Industries has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Valhi has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
NL Industries pays an annual dividend of $0.32 per share and has a dividend yield of 3.8%. Valhi pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. NL Industries pays out -799.8% of its earnings in the form of a dividend. Valhi pays out -76.2% 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. NL Industries has raised its dividend for 1 consecutive years. NL Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valhi received 33 more outperform votes than NL Industries when rated by MarketBeat users. Likewise, 62.46% of users gave Valhi an outperform vote while only 59.94% of users gave NL Industries an outperform vote.
In the previous week, NL Industries had 3 more articles in the media than Valhi. MarketBeat recorded 4 mentions for NL Industries and 1 mentions for Valhi. Valhi's average media sentiment score of 0.23 beat NL Industries' score of 0.00 indicating that NL Industries is being referred to more favorably in the media.
10.7% of NL Industries shares are held by institutional investors. Comparatively, 3.8% of Valhi shares are held by institutional investors. 0.3% of NL Industries shares are held by company insiders. Comparatively, 0.1% of Valhi shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valhi has a net margin of -0.63% compared to Valhi's net margin of -1.43%. Valhi's return on equity of -0.59% beat NL Industries' return on equity.
NL Industries has higher earnings, but lower revenue than Valhi. NL Industries is trading at a lower price-to-earnings ratio than Valhi, indicating that it is currently the more affordable of the two stocks.
Summary
NL Industries beats Valhi on 13 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VHI 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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