Reviewing Clariant (OTCMKTS:CLZNY) and Incitec Pivot (OTCMKTS:INCZY)

Clariant (OTCMKTS:CLZNY) and Incitec Pivot (OTCMKTS:INCZY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Earnings & Valuation

This table compares Clariant and Incitec Pivot’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clariant	N/A	N/A	N/A	$0.47	32.24
Incitec Pivot	N/A	N/A	N/A	$0.15	13.46

Incitec Pivot is trading at a lower price-to-earnings ratio than Clariant, indicating that it is currently the more affordable of the two stocks.

Dividends

Clariant pays an annual dividend of $1.32 per share and has a dividend yield of 8.8%. Incitec Pivot pays an annual dividend of $0.08 per share and has a dividend yield of 3.7%. Clariant pays out 283.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Incitec Pivot pays out 50.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for Clariant and Incitec Pivot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clariant	0	0	1	1	3.50
Incitec Pivot	1	0	0	0	1.00

Institutional & Insider Ownership

0.2% of Clariant shares are owned by institutional investors. Comparatively, 0.0% of Incitec Pivot shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Clariant and Incitec Pivot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clariant	N/A	N/A	N/A
Incitec Pivot	N/A	N/A	N/A

Summary

Clariant beats Incitec Pivot on 7 of the 8 factors compared between the two stocks.

About Clariant

Clariant AG engages in the development, manufacture, distribution, and sale of specialty chemicals worldwide. The Care Chemicals segment offers specialty chemicals and application solutions for various applications in automotive fluids, aviation, construction chemicals, crop solutions, health care, home care, industrial lubricants, paints and coatings, personal care, and special solvents. The Catalysis segment provides catalyst products for use as ammonia cracking, ammonia, custom catalysts, ethylene and derivatives, fischer-tropsch, fuel cell, fuel upgrading, gas processing, hydrogen, hydrogenation, liquid hydrogen carrier, low-carbon ammonia, low-carbon methanol, methanol, methanol-to-propylene, off-gas treatment, olefins purification, on-purpose propylene, oxidation, polypropylene, refinery stream purification, styrene, zeolite powders, biocatalysis, cellulosic ethanol, cellulosic sugars, low-carbon advanced biofuels, and residue-derived biochemical intermediates. The Adsorbents and Additives segment provides chemicals for oil, gas, mining, and refinery industries; services for oil and gas industries; emulsifiers for explosives, as well as cold-flow additive applications for middle distillates in refineries; mineral-based specialty products for bio- and renewable fuel purification, BTX catalysts, cargo and device protection, cat litter, chemical recycling, civil engineering, clay specialties, detergent additives, edible oil purification, feed additives, foundry additives, kerosene and jet fuel purification, paper additives, PVC stabilizers, and wastewater treatment applications; and flame retardants, performance additives, and advanced surface solutions for use in acid scavengers, antioxidiants, antistatic agents, halogen-free flame retardants, heat stabilizers, hot-melt adhesives, light stabilizers, lubricants, processing aids, processing stabilizers, release agents, slip control agents, and surface modifiers. The company was founded in 1886 and is headquartered in Muttenz, Switzerland.

About Incitec Pivot

Incitec Pivot Limited, together with its subsidiaries, manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, the Asia Pacific, Turkey, France, and internationally. It offers ammonium nitrate, nitrogen-based fertilizer, ammonia, di/mono-ammonium phosphate, and single super phosphate. The company also manufactures and sells industrial explosives, and related products and services to mining, quarrying, and construction industries. In addition, it offers industrial chemicals to the agriculture and specialist industries. The company was founded in 1831 and is headquartered in Southbank, Australia.