Tronox (NYSE:TROX – Get Free Report) and Akzo Nobel (OTCMKTS:AKZOY – Get Free Report) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares Tronox and Akzo Nobel”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tronox | $2.90 billion | 0.22 | -$470.00 million | ($3.46) | -1.14 |
| Akzo Nobel | $11.49 billion | 0.96 | $718.44 million | $1.43 | 14.95 |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Tronox and Akzo Nobel, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tronox | 4 | 4 | 1 | 0 | 1.67 |
| Akzo Nobel | 0 | 6 | 2 | 1 | 2.44 |
Tronox presently has a consensus target price of $7.00, indicating a potential upside of 76.99%. Given Tronox’s higher probable upside, equities analysts plainly believe Tronox is more favorable than Akzo Nobel.
Dividends
Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 5.1%. Akzo Nobel pays an annual dividend of $0.99 per share and has a dividend yield of 4.6%. Tronox pays out -5.8% of its earnings in the form of a dividend. Akzo Nobel pays out 69.2% 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. Tronox is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Tronox and Akzo Nobel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tronox | -17.96% | -24.34% | -5.51% |
| Akzo Nobel | 6.49% | 12.77% | 4.09% |
Volatility and Risk
Tronox has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
73.4% of Tronox shares are held by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are held by institutional investors. 2.0% of Tronox shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Akzo Nobel beats Tronox on 12 of the 17 factors compared between the two stocks.
About Tronox
Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.
About Akzo Nobel
Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. The company operates through two segments: Decorative Paints and Performance Coatings. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products under AkzoNobel, Alabastine, Alba, Andercol, Apla, Armstead Trade, Astral, Astral Batiment, AwlGrip, Brikol, Dulux, Bruguer, Cetabever, Cetol, Chemcraft, Colourland Paints, CONSOLAN, Coral, Cromadex, Cuprinol, Dynacoat, Flexa, Glitsa, Grip-Gard, Herbol, Hammerite, International, Interlux, Innenweis, Interpon, Inca, Luxol, Levis, Lesonal, Molto, Modern Classikk, Maxilite, Mauvilac, Mason CT, Marshall, Mactra, Nordsjo, Oxirite, Protecto, Procolor, Polyfilla, Polycell, Pinotex, Pintuco, Resicoat, Relest, Sparlack, Sadolin, Sikkens, Sea Hawk, Savana, Salcomix, Trimetal, Titanlux, Taubmans, U-tech, Vpowdertech, Vivechrom, Xylazel, Xyladecor, Wanda, and Zweihorn brands. The company serves to energy, packaging, infrastructure, and shipbuilding and maintenance industries, as well as general industries, such as agricultural and construction equipment, construction-related steel, metal fabrication, pipes, appliances, and transportation. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.
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