Head to Head Comparison: Rogers (ROG) and Kraton (KRA)

Rogers (NYSE: ROG) and Kraton (NYSE:KRA) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

97.0% of Rogers shares are held by institutional investors. Comparatively, 95.4% of Kraton shares are held by institutional investors. 1.0% of Rogers shares are held by company insiders. Comparatively, 3.7% of Kraton shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.



Valuation & Earnings

This table compares Rogers and Kraton’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers $821.04 million 2.57 $80.45 million $5.76 19.96
Kraton $1.96 billion 0.77 $97.54 million $2.85 16.52

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rogers and Kraton, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers 0 0 4 0 3.00
Kraton 1 1 2 0 2.25

Rogers currently has a consensus price target of $151.67, indicating a potential upside of 31.90%. Kraton has a consensus price target of $56.33, indicating a potential upside of 19.68%. Given Rogers’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Rogers is more favorable than Kraton.

Volatility & Risk

Rogers has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Kraton has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Rogers and Kraton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rogers 9.56% 13.71% 9.34%
Kraton 5.65% 18.07% 3.80%

Summary

Rogers beats Kraton on 10 of the 14 factors compared between the two stocks.

Rogers Company Profile

Rogers Corporation designs, develops, manufactures, and sells engineered materials and components worldwide. The company's Advanced Connectivity Solutions segment offers circuit materials and solutions for connectivity applications in wireless communications infrastructure, automotive, connected devices, wired infrastructure, consumer electronics, and aerospace/defense. Its Elastomeric Material Solutions segment provides elastomeric material solutions for critical cushioning, sealing, impact protection, and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, mass transportation, construction, and printing applications. The company's Power Electronics Solutions segment offers ceramic substrate materials for power module applications, laminated bus bars for power inverter and high power interconnect applications, and micro-channel coolers. Its Other segment provides elastomeric components for applications in ground transportation, office equipment, consumer, and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. The company also manufactures and sells polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes, and specialty products for the industrial, aerospace, automotive, and electronics markets. Rogers Corporation was founded in 1832 and is headquartered in Chandler, Arizona.

Kraton Company Profile

Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Polymer and Chemical. The Polymer segment offers performance products, including styrene-butadiene-styrene and styrene-isoprene-styrene; and specialty polymers, such as hydrogenated styrenic block copolymers, as well as isoprene rubber and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings. The Chemical segment provides pine-based specialty products that include rosin-based tackifiers for packaging and pressure-sensitive adhesive applications; terpene-based tackifiers for bookbinding, hygiene, and pressure-sensitive adhesive applications; alpha-methyl-styrene (AMS) resins for bookbinding and pressure-sensitive adhesive applications; and hot melt polyamides for flexible packaging. It also provides rosin-based binders for the thermoplastic pavement marking submarket; sells tall oil fatty acids for the asphalt paving market; and produces rosin esters and insoluble maleic-based tackifiers, as well as bitumen additives. In addition, this segment offers terpene-based tread enhancement resins and AMS-based tread enhancement additives, as well as distilled tall oil and rosins for enhancing the performance and manufacturing of high performance, winter, and all-season tires. Further, it provides dimer acids, tall oil rosins, and terpene fractions for fuel additive, oilfield chemical, mining fluid, coating, metalworking fluid and lubricant, and other applications. The company sells its products through various channels, including direct sales force, marketing representatives, and distributors under the Kraton and Cariflex brands. The company was formerly known as Kraton Performance Polymers, Inc. and changed its name to Kraton Corporation in September 2016. Kraton Corporation is based in Houston, Texas.

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