5N Plus (OTCMKTS:FPLSF) vs. Valhi (NYSE:VHI) Head-To-Head Comparison

Valhi (NYSE:VHI) and 5N Plus (OTCMKTS:FPLSF) are both small-cap materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Valhi and 5N Plus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valhi	1	0	0	0	1.00
5N Plus	0	1	2	1	3.00

Volatility & Risk

Valhi has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, 5N Plus has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Insider & Institutional Ownership

3.8% of Valhi shares are held by institutional investors. Comparatively, 0.1% of 5N Plus shares are held by institutional investors. 0.2% of Valhi shares are held by insiders. Comparatively, 3.9% of 5N Plus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Valhi and 5N Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valhi	-2.36%	-2.77%	-1.45%
5N Plus	14.14%	26.36%	11.28%

Earnings & Valuation

This table compares Valhi and 5N Plus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valhi	$2.08 billion	0.24	-$57.60 million	($1.79)	-10.02
5N Plus	$391.06 million	4.23	$50.57 million	$0.70	26.29

5N Plus has lower revenue, but higher earnings than Valhi. Valhi is trading at a lower price-to-earnings ratio than 5N Plus, indicating that it is currently the more affordable of the two stocks.

Summary

5N Plus beats Valhi on 12 of the 14 factors compared between the two stocks.

About Valhi

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.

About 5N Plus

5N Plus Inc. produces and sells specialty metals and chemicals in North America, Europe, and Asia. It operates through two segments, Specialty Semiconductors and Performance Materials. The company offers semiconductor compounds, semiconductor wafers, metals, epitaxial semiconductor substrates, and solar cells. It also provides active pharmaceutical ingredients, animal feed additives, specialized chemicals, commercial grade metals, alloys, engineered powders, and recycling services. The company serves renewable energy, security, space, pharmaceutical, medical imaging, manufacturing, electronic, consumer, and industrial application markets. 5N Plus Inc. is headquartered in Montreal, Canada.