Financial Analysis: W. R. Grace & Co (GRA) versus Cytec Industries (CYT)

W. R. Grace & Co (NYSE: GRA) and Cytec Industries (NYSE:CYT) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

W. R. Grace & Co pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Cytec Industries does not pay a dividend. W. R. Grace & Co pays out 37.2% of its earnings in the form of a dividend.

Profitability

This table compares W. R. Grace & Co and Cytec Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W. R. Grace & Co 0.65% 57.99% 7.84%
Cytec Industries 11.96% 18.60% 8.55%

Analyst Ratings

This is a summary of current recommendations for W. R. Grace & Co and Cytec Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W. R. Grace & Co 0 3 7 0 2.70
Cytec Industries 0 0 0 0 N/A

W. R. Grace & Co currently has a consensus target price of $81.22, indicating a potential upside of 20.42%. Given W. R. Grace & Co’s higher possible upside, analysts plainly believe W. R. Grace & Co is more favorable than Cytec Industries.

Institutional & Insider Ownership

85.0% of W. R. Grace & Co shares are owned by institutional investors. 1.3% of W. R. Grace & Co shares are owned by 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.

Valuation & Earnings

This table compares W. R. Grace & Co and Cytec Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W. R. Grace & Co $1.72 billion 2.66 $11.20 million $2.26 29.85
Cytec Industries N/A N/A N/A $1.78 42.23

W. R. Grace & Co has higher revenue and earnings than Cytec Industries. W. R. Grace & Co is trading at a lower price-to-earnings ratio than Cytec Industries, indicating that it is currently the more affordable of the two stocks.

Summary

W. R. Grace & Co beats Cytec Industries on 8 of the 12 factors compared between the two stocks.

W. R. Grace & Co Company Profile

W. R. Grace & Co. (Grace) is engaged in the production and sale of specialty chemicals and specialty materials. The Company operates in two segments: Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. The Grace Materials Technologies segment includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. It Grace Catalysts Technologies segment produces and sells catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications, including Fluid catalytic cracking catalysts (FCC), Hydroprocessing catalysts (HPC), and Polyolefin catalysts and catalyst supports.

Cytec Industries Company Profile

Cytec Industries Inc. is a global specialty materials and chemicals company focused on developing, manufacturing and selling value-added products. The Company offers aerospace and industrial materials, mining and plastics industries. The Company operates through four segments: Aerospace Materials, Industrial Materials, In Process Separation, and Additive Technologies. The Aerospace Materials segment includes advanced composites, carbon fiber, and structural film adhesives. The Industrial Materials segment includes structural composite materials, which serve automotive, motorsports, recreation, tooling, and other structural materials markets and process materials, which serves aerospace, wind energy, and other process materials markets. The In Process Separation segment includes mining chemicals and phosphines. The Additive Technologies segment includes polymer additives, specialty additives, and formulated resins. The Company operates as a wholly owned subsidiary of Solvay.

Receive News & Ratings for W. R. Grace & Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for W. R. Grace & Co and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply