OLN vs. FMC, HUN, BCPC, ASH, CC, IOSP, NGVT, CMC, PAAS, and ICL
Should you be buying Olin stock or one of its competitors? The main competitors of Olin include FMC (FMC), Huntsman (HUN), Balchem (BCPC), Ashland (ASH), Chemours (CC), Innospec (IOSP), Ingevity (NGVT), Commercial Metals (CMC), Pan American Silver (PAAS), and ICL Group (ICL). These companies are all part of the "basic materials" sector.
Olin (NYSE:OLN) and FMC (NYSE:FMC) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, media sentiment, dividends, institutional ownership, community ranking and earnings.
Olin has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, FMC has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Olin pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. FMC pays an annual dividend of $2.32 per share and has a dividend yield of 3.6%. Olin pays out 28.8% of its earnings in the form of a dividend. FMC pays out 22.0% 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. FMC is clearly the better dividend stock, given its higher yield and lower payout ratio.
FMC has a net margin of 29.45% compared to Olin's net margin of 5.32%. Olin's return on equity of 14.47% beat FMC's return on equity.
FMC has lower revenue, but higher earnings than Olin. FMC is trading at a lower price-to-earnings ratio than Olin, indicating that it is currently the more affordable of the two stocks.
88.7% of Olin shares are owned by institutional investors. Comparatively, 91.9% of FMC shares are owned by institutional investors. 1.8% of Olin shares are owned by company insiders. Comparatively, 0.8% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Olin currently has a consensus target price of $60.00, suggesting a potential upside of 8.32%. FMC has a consensus target price of $71.69, suggesting a potential upside of 10.56%. Given FMC's higher possible upside, analysts plainly believe FMC is more favorable than Olin.
FMC received 225 more outperform votes than Olin when rated by MarketBeat users. Likewise, 64.86% of users gave FMC an outperform vote while only 59.65% of users gave Olin an outperform vote.
In the previous week, FMC had 39 more articles in the media than Olin. MarketBeat recorded 44 mentions for FMC and 5 mentions for Olin. Olin's average media sentiment score of 0.50 beat FMC's score of 0.34 indicating that Olin is being referred to more favorably in the media.
Summary
FMC beats Olin on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding OLN 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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