CF Industries (NYSE:CF – Get Free Report) and Olin (NYSE:OLN – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares CF Industries and Olin”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CF Industries | $7.08 billion | 2.63 | $1.46 billion | $13.49 | 9.14 |
| Olin | $6.78 billion | 0.30 | -$100.50 million | ($1.47) | -11.95 |
CF Industries has higher revenue and earnings than Olin. Olin is trading at a lower price-to-earnings ratio than CF Industries, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.1% of CF Industries shares are owned by institutional investors. Comparatively, 88.7% of Olin shares are owned by institutional investors. 0.5% of CF Industries shares are owned by insiders. Comparatively, 1.6% of Olin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for CF Industries and Olin, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CF Industries | 3 | 12 | 6 | 2 | 2.30 |
| Olin | 3 | 12 | 1 | 0 | 1.88 |
CF Industries presently has a consensus price target of $121.94, suggesting a potential downside of 1.08%. Olin has a consensus price target of $20.07, suggesting a potential upside of 14.30%. Given Olin’s higher probable upside, analysts clearly believe Olin is more favorable than CF Industries.
Dividends
CF Industries pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.6%. CF Industries pays out 17.8% of its earnings in the form of a dividend. Olin pays out -54.4% 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. CF Industries has increased its dividend for 3 consecutive years. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
CF Industries has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Olin has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Profitability
This table compares CF Industries and Olin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CF Industries | 27.12% | 24.41% | 13.74% |
| Olin | -2.49% | -6.58% | -1.58% |
Summary
CF Industries beats Olin on 12 of the 17 factors compared between the two stocks.
About CF Industries
CF Industries Holdings, Inc., together with its subsidiaries, engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities in North America, Europe, and internationally. It operates through Ammonia, Granular Urea, UAN, AN, and Other segments. The company's principal products include anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products. It also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia products. The company primarily serves cooperatives, independent fertilizer distributors, traders, wholesalers, and industrial users. CF Industries Holdings, Inc. was founded in 1946 and is headquartered in Northbrook, Illinois.
About Olin
Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.
Receive News & Ratings for CF Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CF Industries and related companies with MarketBeat.com's FREE daily email newsletter.
