Valhi (NYSE:VHI – Get Free Report) is one of 296 public companies in the “Chemicals” industry, but how does it contrast to its rivals? We will compare Valhi to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, risk, profitability, earnings and valuation.
Valuation and Earnings
This table compares Valhi and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Valhi | $2.08 billion | -$57.60 million | 343.10 |
| Valhi Competitors | $6.37 billion | $229.42 million | 19.87 |
Valhi’s rivals have higher revenue and earnings than Valhi. Valhi is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Dividends
Valhi pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Valhi pays out 640.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.2% of their earnings in the form of a dividend. Valhi lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Valhi and its rivals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valhi | 1 | 0 | 0 | 0 | 1.00 |
| Valhi Competitors | 3273 | 12243 | 14159 | 521 | 2.40 |
As a group, “Chemicals” companies have a potential upside of 7.61%. Given Valhi’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Valhi has less favorable growth aspects than its rivals.
Risk & Volatility
Valhi has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Valhi’s rivals have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.
Profitability
This table compares Valhi and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valhi | 0.06% | 0.09% | 0.05% |
| Valhi Competitors | -54.13% | -0.60% | -1.36% |
Insider & Institutional Ownership
3.8% of Valhi shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 0.2% of Valhi shares are held by insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Valhi rivals beat Valhi on 10 of the 15 factors compared.
About Valhi
Valhi, Inc. is a holding company whose businesses operate through subsidiaries in chemicals, component products, waste management and real estate. Its chemical operations include an interest in Kronos Worldwide, a producer and marketer of titanium dioxide pigments used to add whiteness, brightness and opacity to products such as paints, plastics and paper. Through CompX International, Valhi is also involved in manufacturing security products and marine components. Its waste-management subsidiary, Waste Control Specialists, provides disposal and related services for certain low-level radioactive, hazardous and industrial wastes at its facility in Andrews County, Texas.
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