Financial Analysis: Elementis (OTCMKTS:EMNSF) versus AirBoss of America (OTCMKTS:ABSSF)

Elementis (OTCMKTS:EMNSF) and AirBoss of America (OTCMKTS:ABSSF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Valuation & Earnings

This table compares Elementis and AirBoss of America’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elementis	N/A	N/A	N/A	$0.24	7.25
AirBoss of America	N/A	N/A	N/A	$0.40	9.78

Elementis is trading at a lower price-to-earnings ratio than AirBoss of America, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Elementis and AirBoss of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elementis	N/A	N/A	N/A
AirBoss of America	N/A	N/A	N/A

Dividends

Elementis pays an annual dividend of $0.08 per share and has a dividend yield of 4.6%. AirBoss of America pays an annual dividend of $0.18 per share and has a dividend yield of 4.6%. Elementis pays out 33.3% of its earnings in the form of a dividend. AirBoss of America pays out 45.4% 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 breakdown of recent ratings for Elementis and AirBoss of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elementis	0	0	0	0	N/A
AirBoss of America	0	1	0	0	2.00

AirBoss of America has a consensus target price of $29.00, indicating a potential upside of 632.32%. Given AirBoss of America’s higher possible upside, analysts clearly believe AirBoss of America is more favorable than Elementis.

Institutional and Insider Ownership

66.0% of Elementis shares are held by institutional investors. Comparatively, 16.5% of AirBoss of America shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

AirBoss of America beats Elementis on 4 of the 6 factors compared between the two stocks.

About Elementis

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.

About AirBoss of America

AirBoss of America Corp., together with its subsidiaries, manufactures and sells rubber-based products in Canada, the United States, and internationally. It operates through AirBoss Rubber Solutions and AirBoss Manufactured Products segments. The AirBoss Rubber Solutions segment involves in the manufacture and distribution of rubber compounds and rubber compounding related chemicals for various application in automotive, heavy industry, rollers, conveyor belting, defense, construction and infrastructure, mining, transportation, and oil and gas industries. The AirBoss Manufactured Products segment offers anti-noise, vibration and harshness dampening parts, and personal protection and safety products, including rubber, synthetic rubber, and rubber-to-metal bonded products to eliminate or control undesired vibration and noise for use in automotive, electric vehicle, heavy truck and off-highway, industrial and defense industries. It also provides protective equipment to military, law enforcement, industrial providers, and first responders; and healthcare protective equipment, personal respiratory protective products, chemical, biological, radioactive, nuclear and explosive protective equipment, rapid deployment negative pressure isolation shelters, and cold weather combat footwear under the AirBoss Defense brand name. The company was formerly known as IATCO Industries Inc. and changed its name to AirBoss of America Corp. in April 1994. AirBoss of America Corp. is headquartered in Newmarket, Canada.