Analyzing ELEMENTIS PLC/ADR (OTCMKTS:ELMTY) & ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY)

ELEMENTIS PLC/ADR (OTCMKTS:ELMTY) and ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares ELEMENTIS PLC/ADR and ROYAL MAIL PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ELEMENTIS PLC/ADR N/A N/A N/A
ROYAL MAIL PLC/ADR N/A N/A N/A

Volatility & Risk

ELEMENTIS PLC/ADR has a beta of 0.96, indicating that its share price is 4% 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.

Dividends

ELEMENTIS PLC/ADR pays an annual dividend of $0.19 per share and has a dividend yield of 2.5%. ROYAL MAIL PLC/ADR pays an annual dividend of $0.33 per share and has a dividend yield of 5.3%. ELEMENTIS PLC/ADR pays out 27.9% 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for ELEMENTIS PLC/ADR and ROYAL MAIL PLC/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ELEMENTIS PLC/ADR 0 0 0 0 N/A
ROYAL MAIL PLC/ADR 0 5 1 0 2.17

Valuation and Earnings

This table compares ELEMENTIS PLC/ADR and ROYAL MAIL PLC/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ELEMENTIS PLC/ADR $822.20 million 1.06 $41.40 million $0.68 11.04
ROYAL MAIL PLC/ADR $14.12 billion 0.22 $229.74 million $0.81 7.75

ROYAL MAIL PLC/ADR has higher revenue and earnings than ELEMENTIS PLC/ADR. ROYAL MAIL PLC/ADR is trading at a lower price-to-earnings ratio than ELEMENTIS PLC/ADR, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.1% of ROYAL MAIL PLC/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ROYAL MAIL PLC/ADR beats ELEMENTIS PLC/ADR on 7 of the 10 factors compared between the two stocks.

ELEMENTIS PLC/ADR Company Profile

Elementis plc manufactures and sells specialty chemicals in North and South America, Europe, and Asia. It operates through Specialty Products and Chromium segments. The Specialty Products segment offers functional additives to the personal care, coatings, and energy end markets, as well as oilfield and construction sectors. Its principal products include rheological additives and modifiers, dispersing agents, flow and levelling additives, other specialty additives and resins, organoclays and colourants, defoamers and coalescing agents, wetting and slip agents, and lanolin and other natural oil derivatives. The Chromium segment provides chromium chemicals, such as sodium dichromate, chromic oxide, chromic acid, and liquid chrome sulphate for the leather tanning, metal finishing, chrome pigments, timber treatment, chrome metal alloys, and ceramics/refractory sectors. The company also offers personal care products and waxes, as well as engages in the research and development of personal care products. Elementis plc was founded in 1844 and is headquartered in London, 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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