Croda International (OTCMKTS:COIHD) and ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Dividends
Croda International pays an annual dividend of $0.58 per share. ROYAL MAIL PLC/ADR pays an annual dividend of $0.33 per share and has a dividend yield of 5.3%. Croda International pays out 45.0% of its earnings in the form of a dividend. ROYAL MAIL PLC/ADR pays out 40.7% 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. ROYAL MAIL PLC/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Croda International and ROYAL MAIL PLC/ADR’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Croda International | N/A | N/A | N/A |
ROYAL MAIL PLC/ADR | N/A | N/A | N/A |
Volatility & Risk
Croda International has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, ROYAL MAIL PLC/ADR has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Croda International and ROYAL MAIL PLC/ADR, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Croda International | 0 | 0 | 0 | 0 | N/A |
ROYAL MAIL PLC/ADR | 0 | 5 | 1 | 0 | 2.17 |
Institutional & Insider Ownership
0.0% of Croda International shares are held by institutional investors. Comparatively, 0.1% of ROYAL MAIL PLC/ADR shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Croda International and ROYAL MAIL PLC/ADR’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Croda International | $1.85 billion | 0.00 | $331.56 million | $1.29 | N/A |
ROYAL MAIL PLC/ADR | $14.12 billion | 0.22 | $229.74 million | $0.81 | 7.65 |
Croda International has higher earnings, but lower revenue than ROYAL MAIL PLC/ADR. Croda International is trading at a lower price-to-earnings ratio than ROYAL MAIL PLC/ADR, indicating that it is currently the more affordable of the two stocks.
Summary
ROYAL MAIL PLC/ADR beats Croda International on 6 of the 9 factors compared between the two stocks.
Croda International Company Profile
Croda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company operates in four segments: Personal Care, Life Sciences, Performance Technologies, and Industrial Chemicals. It offers adhesives; crop protection additives and adjuvants, seed enhancement and animal health chemicals, chemical bio-stimulants, and specialty additives for agricultural films; and lubricant additives, coatings and polymers, vehicle cleaning chemicals, and products for automotive textiles and fibers, as well as specialty additives for plastics, and battery and catalyst industries. The company also provides specialty ingredients for self-tanning, color cosmetics, bath and shower, deodorants, anti-perspirants, depilatories, men’s grooming, and oral hygiene, as well as skin, hair, sun, body, and baby care applications; construction chemicals, and bitumen additives; dietary supplements; and advanced materials, and polymer additives for electronics and devices. In addition, it provides chemistries, emulsifiers, fuel and power generation additives, and polymer additives; food additives; specialty polymer additives for furniture and wood applications; household, industrial, and institutional cleaning products; lubricants; oleochemicals; and packaging, print, and paper chemicals. Further, it provides paints and coatings; active pharmaceutical ingredients; thermal management products; plastic and rubber products for food packaging, carrier bags and toys, car bumpers, mobile phones, and home appliances; skin health products; hygiene and industrial nonwovens, botanical extracts, tissues, and textile auxiliaries; and water treatment chemicals. Additionally, the company offers bio-based phase change materials for automotive, building and construction, electronics and devices, and thermal energy storage applications. Croda International Plc was founded in 1925 and is headquartered in Goole, the United Kingdom.
ROYAL MAIL PLC/ADR Company Profile
Royal Mail plc, together with its subsidiaries, operates as an universal postal service provider in the United Kingdom, the United States, and other European countries. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. The company also provides services for the collection, sorting, and delivery of parcels and letters; and designs and produces stamps and philatelic items, as well as offers media and marketing mail services. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 41 European countries and nation states through wholly-owned and partner companies. Further, the company provides express and logistics services. Additionally, it engages in property holdings activities; and provision of facilities management services. The company serves consumers, small and medium-sized enterprises, retailers, and other postal operators, as well as business-to-business and business-to-consumer sectors. Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.
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