Orion (NYSE:OEC – Get Free Report) and Arkema (OTCMKTS:ARKAY – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Volatility and Risk
Orion has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Arkema has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Insider & Institutional Ownership
94.3% of Orion shares are owned by institutional investors. 3.1% of Orion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion | $1.81 billion | 0.19 | -$70.10 million | ($1.73) | -3.45 |
| Arkema | $10.26 billion | 0.51 | $71.28 million | $0.29 | 237.90 |
Arkema has higher revenue and earnings than Orion. Orion is trading at a lower price-to-earnings ratio than Arkema, indicating that it is currently the more affordable of the two stocks.
Dividends
Orion pays an annual dividend of $0.08 per share and has a dividend yield of 1.3%. Arkema pays an annual dividend of $3.12 per share and has a dividend yield of 4.5%. Orion pays out -4.6% of its earnings in the form of a dividend. Arkema pays out 1,075.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Orion and Arkema’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion | -5.28% | -0.31% | -0.06% |
| Arkema | 0.67% | 4.30% | 2.15% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Orion and Arkema, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion | 3 | 2 | 0 | 0 | 1.40 |
| Arkema | 1 | 6 | 1 | 0 | 2.00 |
Orion currently has a consensus target price of $6.08, suggesting a potential upside of 1.90%. Given Orion’s higher probable upside, equities research analysts plainly believe Orion is more favorable than Arkema.
Summary
Arkema beats Orion on 11 of the 16 factors compared between the two stocks.
About Orion
Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.
About Arkema
Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.
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