Olin (NYSE:OLN) vs. Tronox (NYSE:TROX) Head-To-Head Analysis

Olin (NYSE:OLN) and Tronox (NYSE:TROX) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares Olin and Tronox”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.78 billion	0.44	-$100.50 million	($1.12)	-23.23
Tronox	$2.90 billion	0.42	-$470.00 million	($2.92)	-2.64

Olin has higher revenue and earnings than Tronox. Olin is trading at a lower price-to-earnings ratio than Tronox, indicating that it is currently the more affordable of the two stocks.

Dividends

Olin pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 2.6%. Olin pays out -71.4% of its earnings in the form of a dividend. Tronox pays out -6.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

88.7% of Olin shares are held by institutional investors. Comparatively, 73.4% of Tronox shares are held by institutional investors. 1.6% of Olin shares are held by company insiders. Comparatively, 2.0% of Tronox shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Olin has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Tronox has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Olin and Tronox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olin	-1.89%	-4.68%	-1.18%
Tronox	-15.82%	-19.93%	-4.86%

Analyst Ratings

This is a breakdown of current ratings and target prices for Olin and Tronox, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	2	11	3	1	2.18
Tronox	4	5	3	0	1.92

Olin presently has a consensus price target of $27.79, indicating a potential upside of 6.79%. Tronox has a consensus price target of $6.80, indicating a potential downside of 11.75%. Given Olin’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Olin is more favorable than Tronox.

Summary

Olin beats Tronox on 14 of the 16 factors compared between the two stocks.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.