Contrasting Tronox (TROX) & Its Rivals

Tronox (NYSE: TROX) is one of 17 public companies in the “Industrial inorganic chemicals” industry, but how does it compare to its rivals? We will compare Tronox to related businesses based on the strength of its valuation, analyst recommendations, earnings, risk, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tronox and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tronox 0 1 3 0 2.75
Tronox Competitors 133 424 626 12 2.43

Tronox currently has a consensus target price of $28.00, suggesting a potential upside of 16.72%. As a group, “Industrial inorganic chemicals” companies have a potential upside of 6.67%. Given Tronox’s stronger consensus rating and higher possible upside, analysts clearly believe Tronox is more favorable than its rivals.

Earnings and Valuation

This table compares Tronox and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tronox $2.76 billion $969.00 million 15.09
Tronox Competitors $3.74 billion $366.26 million 7.62

Tronox’s rivals have higher revenue, but lower earnings than Tronox. Tronox is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Tronox pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Tronox pays out 25.2% of its earnings in the form of a dividend. As a group, “Industrial inorganic chemicals” companies pay a dividend yield of 1.6% and pay out 48.6% of their earnings in the form of a dividend. Tronox has increased its dividend for 2 consecutive years. Tronox is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

66.8% of Tronox shares are held by institutional investors. Comparatively, 47.5% of shares of all “Industrial inorganic chemicals” companies are held by institutional investors. 2.4% of Tronox shares are held by insiders. Comparatively, 8.0% of shares of all “Industrial inorganic chemicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Tronox has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500. Comparatively, Tronox’s rivals have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Profitability

This table compares Tronox and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tronox 7.14% 15.84% 4.80%
Tronox Competitors 2.89% 9.83% 2.88%

Summary

Tronox beats its rivals on 12 of the 15 factors compared.

About Tronox

Tronox Holdings Plc engages in the mining and inorganic chemical business. Its products include Titanium Dioxide Mineral Sands. The firm also mines and processes titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments. The company was founded in 2006 and is headquartered in Stamford, CT.

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