Trinseo (NYSE:TSE – Get Free Report) and Scotts Miracle-Gro (NYSE:SMG – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Trinseo and Scotts Miracle-Gro, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trinseo | 1 | 2 | 0 | 0 | 1.67 |
| Scotts Miracle-Gro | 0 | 2 | 4 | 0 | 2.67 |
Trinseo currently has a consensus price target of $1.00, indicating a potential upside of 334.78%. Scotts Miracle-Gro has a consensus price target of $70.20, indicating a potential upside of 18.32%. Given Trinseo’s higher probable upside, analysts clearly believe Trinseo is more favorable than Scotts Miracle-Gro.
Volatility & Risk
Trinseo has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.
Institutional & Insider Ownership
82.7% of Trinseo shares are owned by institutional investors. Comparatively, 74.1% of Scotts Miracle-Gro shares are owned by institutional investors. 4.5% of Trinseo shares are owned by insiders. Comparatively, 24.4% of Scotts Miracle-Gro shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Trinseo and Scotts Miracle-Gro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trinseo | $3.13 billion | 0.00 | -$348.50 million | ($11.55) | -0.02 |
| Scotts Miracle-Gro | $3.48 billion | 0.99 | $66.91 million | $1.15 | 51.59 |
Scotts Miracle-Gro has higher revenue and earnings than Trinseo. Trinseo is trading at a lower price-to-earnings ratio than Scotts Miracle-Gro, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trinseo and Scotts Miracle-Gro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trinseo | -13.15% | N/A | -11.72% |
| Scotts Miracle-Gro | N/A | N/A | N/A |
Dividends
Trinseo pays an annual dividend of $0.04 per share and has a dividend yield of 17.4%. Scotts Miracle-Gro pays an annual dividend of $2.64 per share and has a dividend yield of 4.4%. Trinseo pays out -0.3% of its earnings in the form of a dividend. Scotts Miracle-Gro pays out 229.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trinseo has increased its dividend for 1 consecutive years. Trinseo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Scotts Miracle-Gro beats Trinseo on 11 of the 16 factors compared between the two stocks.
About Trinseo
Trinseo PLC operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally. It operates through five segments: Engineered Materials, Latex Binders, Plastics Solutions, Polystyrene, and Americas Styrenics. The Engineered Materials segment offers rigid thermoplastic compounds and blends, soft thermoplastic, continuous cast, cell cast, activated methyl methacrylates (MMA), PMMA resins, and extruded PMMA sheets and resins for consumer electronics, medical, footwear, automotive, and building and construction applications under the EMERGE, CALIBRE, PLEXIGLAS, ALTUGLAS, ACRYSPA, AVONITE, STUDIO, MEGOL, APILON, APIGO, and APINAT brands. The Latex Binders segment provides styrene-butadiene latex, and other latex polymers and binders primarily for coated paper and packaging board, carpet, and artificial turf backings, as well as the adhesive, building and construction, and technical textile paper market. The Plastics Solutions segment offers acrylonitrile-butadiene-styrene, styrene-acrylonitrile, polycarbonate, and compounds and blends for automotive and other applications under the MAGNUM brand. The Polystyrene segment provides general purpose polystyrenes and high impact polystyrene for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials under the STYRON brand. The Americas Styrenics segment provides styrene and polystyrene for appliances, food packaging, food service disposables, consumer electronics, and building and construction materials applications. Trinseo PLC was incorporated in 2015 and is headquartered in Wayne, Pennsylvania.
About Scotts Miracle-Gro
The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.
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