CSW Industrials (NASDAQ: CSWI) and Verenium (NASDAQ:VRNM) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This table compares CSW Industrials and Verenium’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
67.8% of CSW Industrials shares are held by institutional investors. 2.1% of CSW Industrials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CSW Industrials and Verenium’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CSW Industrials||$327.08 million||2.29||$11.07 million||$1.20||39.13|
CSW Industrials has higher revenue and earnings than Verenium. Verenium is trading at a lower price-to-earnings ratio than CSW Industrials, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for CSW Industrials and Verenium, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CSW Industrials presently has a consensus target price of $60.00, indicating a potential upside of 27.80%. Given CSW Industrials’ higher possible upside, research analysts plainly believe CSW Industrials is more favorable than Verenium.
Volatility and Risk
CSW Industrials has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Verenium has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
CSW Industrials beats Verenium on 10 of the 10 factors compared between the two stocks.
CSW Industrials Company Profile
CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.
Verenium Company Profile
Verenium Corporation (Verenium) is an industrial biotechnology company. The Company develops and commercializes enzymes for use in a range of industrial processes. It manufactures and markets its enzyme products in the fields of animal health and nutrition, grain processing, oilfield services and other industrial processes, such as pulp and paper and textiles. As of December 31, 2012, it marketed commercial enzyme products, either independently or in collaboration with its partners. In addition, it has developed a pipeline of enzyme product candidates. Its products are organized into four product lines: animal health and nutrition, grain processing, oilfield services and other industrial processes. As of December 31, 2012, it markets nine commercial enzyme products. In October 2013, BASF SE acquired 71% stake in the Company.
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