Covestro (OTCMKTS:COVTY – Get Free Report) is one of 297 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its peers? We will compare Covestro to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, risk, profitability, dividends and earnings.
Risk & Volatility
Covestro has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Covestro’s peers have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.
Insider & Institutional Ownership
47.6% of shares of all “Chemicals” companies are owned by institutional investors. 13.8% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Covestro | $14.64 billion | -$728.62 million | -13.47 |
| Covestro Competitors | $6.31 billion | $216.43 million | -4.47 |
Covestro has higher revenue, but lower earnings than its peers. Covestro is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Covestro and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Covestro | -6.97% | -13.22% | -6.31% |
| Covestro Competitors | -60.60% | -10.75% | -1.28% |
Analyst Ratings
This is a breakdown of recent recommendations for Covestro and its peers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Covestro | 0 | 1 | 0 | 0 | 2.00 |
| Covestro Competitors | 3209 | 12187 | 14205 | 497 | 2.40 |
As a group, “Chemicals” companies have a potential upside of 9.13%. Given Covestro’s peers stronger consensus rating and higher possible upside, analysts clearly believe Covestro has less favorable growth aspects than its peers.
Summary
Covestro peers beat Covestro on 11 of the 13 factors compared.
About Covestro
Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.
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