Reviewing Covestro (COVTY) & Its Peers

Covestro (OTCMKTS:COVTY) is one of 297 publicly-traded companies in the “Chemicals” industry, but how does it compare to its competitors? We will compare Covestro to related businesses based on the strength of its valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Covestro and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Covestro	$14.64 billion	-$728.62 million	-13.98
Covestro Competitors	$6.35 billion	$216.43 million	-4.35

Covestro has higher revenue, but lower earnings than its competitors. Covestro is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Covestro and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covestro	0	1	0	0	2.00
Covestro Competitors	3206	12182	14193	495	2.40

As a group, “Chemicals” companies have a potential upside of 7.26%. Given Covestro’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Covestro has less favorable growth aspects than its competitors.

Profitability

This table compares Covestro and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covestro	-6.97%	-13.22%	-6.31%
Covestro Competitors	-103.38%	-11.24%	-1.74%

Insider and Institutional Ownership

48.2% of shares of all “Chemicals” companies are owned by institutional investors. 14.0% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Covestro has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Covestro’s competitors have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.

Summary

Covestro competitors beat Covestro on 11 of the 13 factors compared.

About Covestro

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.