Comparing Sigma-Aldrich (NASDAQ:SIAL) and Trinseo (TSE)

Trinseo (NYSE: TSE) and Sigma-Aldrich (NASDAQ:SIAL) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

96.9% of Trinseo shares are owned by institutional investors. 0.3% of Trinseo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 1.8%. Sigma-Aldrich does not pay a dividend. Trinseo pays out 22.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Trinseo and Sigma-Aldrich’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trinseo $3.72 billion 0.92 $318.31 million $6.39 12.29
Sigma-Aldrich N/A N/A N/A $4.08 N/A

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

Profitability

This table compares Trinseo and Sigma-Aldrich’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trinseo 6.78% 65.80% 13.58%
Sigma-Aldrich 16.22% 13.72% 10.47%

Analyst Ratings

This is a summary of current ratings and target prices for Trinseo and Sigma-Aldrich, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trinseo 0 2 3 0 2.60
Sigma-Aldrich 0 0 0 0 N/A

Trinseo currently has a consensus target price of $76.25, suggesting a potential downside of 2.93%.

Summary

Trinseo beats Sigma-Aldrich on 8 of the 10 factors compared between the two stocks.

Trinseo Company Profile

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

Sigma-Aldrich Company Profile

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

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