Quaker Houghton (NYSE:KWR) versus Orbia Advance (OTCMKTS:MXCHY) Financial Review

Quaker Houghton (NYSE:KWR) and Orbia Advance (OTCMKTS:MXCHY) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Dividends

Quaker Houghton pays an annual dividend of $1.94 per share and has a dividend yield of 1.7%. Orbia Advance pays an annual dividend of $0.09 per share and has a dividend yield of 7.3%. Quaker Houghton pays out 36.7% of its earnings in the form of a dividend. Quaker Houghton has increased its dividend for 17 consecutive years.

Earnings & Valuation

This table compares Quaker Houghton and Orbia Advance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaker Houghton	$1.84 billion	1.11	$116.64 million	$5.29	21.77
Orbia Advance	$7.51 billion	0.16	$145.00 million	N/A	N/A

Orbia Advance has higher revenue and earnings than Quaker Houghton.

Profitability

This table compares Quaker Houghton and Orbia Advance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaker Houghton	5.20%	8.86%	4.63%
Orbia Advance	1.93%	7.22%	1.98%

Insider and Institutional Ownership

77.5% of Quaker Houghton shares are held by institutional investors. 1.1% of Quaker Houghton shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Quaker Houghton has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Orbia Advance has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Quaker Houghton and Orbia Advance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaker Houghton	0	1	3	0	2.75
Orbia Advance	0	0	1	0	3.00

Quaker Houghton presently has a consensus target price of $159.25, indicating a potential upside of 38.30%. Given Quaker Houghton’s higher probable upside, analysts plainly believe Quaker Houghton is more favorable than Orbia Advance.

Summary

Quaker Houghton beats Orbia Advance on 10 of the 15 factors compared between the two stocks.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.