Shanghai Petrochemical (SHI) & Its Peers Critical Contrast

Shanghai Petrochemical (NYSE: SHI) is one of 14 publicly-traded companies in the “Plastics materials & resins” industry, but how does it weigh in compared to its competitors? We will compare Shanghai Petrochemical to similar businesses based on the strength of its institutional ownership, dividends, analyst recommendations, valuation, risk, profitability and earnings.

Risk and Volatility

Shanghai Petrochemical has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Shanghai Petrochemical’s competitors have a beta of -2.64, meaning that their average share price is 364% less volatile than the S&P 500.

Insider and Institutional Ownership

1.4% of Shanghai Petrochemical shares are owned by institutional investors. Comparatively, 81.2% of shares of all “Plastics materials & resins” companies are owned by institutional investors. 1.0% of Shanghai Petrochemical shares are owned by insiders. Comparatively, 1.7% of shares of all “Plastics materials & resins” companies are owned 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.

Analyst Ratings

This is a breakdown of recent recommendations for Shanghai Petrochemical and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shanghai Petrochemical 0 2 1 0 2.33
Shanghai Petrochemical Competitors 45 377 685 22 2.61

As a group, “Plastics materials & resins” companies have a potential upside of 10.96%. Given Shanghai Petrochemical’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Shanghai Petrochemical has less favorable growth aspects than its competitors.

Profitability

This table compares Shanghai Petrochemical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shanghai Petrochemical 6.51% 22.93% 16.55%
Shanghai Petrochemical Competitors 6.70% 22.94% 8.07%

Dividends

Shanghai Petrochemical pays an annual dividend of $3.26 per share and has a dividend yield of 4.7%. As a group, “Plastics materials & resins” companies pay a dividend yield of 1.7% and pay out 28.2% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Shanghai Petrochemical and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Shanghai Petrochemical $11.72 billion $909.19 million N/A
Shanghai Petrochemical Competitors $9.05 billion $413.23 million 18.83

Shanghai Petrochemical has higher revenue and earnings than its competitors.

Summary

Shanghai Petrochemical competitors beat Shanghai Petrochemical on 9 of the 15 factors compared.

About Shanghai Petrochemical

Sinopec Shanghai Petrochemical Company Limited, together with its subsidiaries, manufactures and sells petrochemical products in the People's Republic of China. The company operates through five segments: Synthetic Fibres, Resins and Plastics, Intermediate Petrochemicals, Petroleum Products, and Trading of Petrochemical Products. The Synthetic Fibres segment produces polyester, acrylic fibers, and carbon fibers, which are primarily used in the textile and apparel industries. The Resins and Plastics segment produces polyester chips that are used to produce polyester fibers, coating, and containers; polyethylene resins and plastics, which are used to produce insulated cable, mulching films, and molded products, such as housewares and toys; and polypropylene resins that are used for films, sheets, and molded products, such as housewares, toys, consumer electronics, and automobile parts; and PVA granules. The Intermediate Petrochemicals segment produces p-xylene, benzene, and ethylene oxide, which are used as raw materials in the production of other petrochemicals, resins, plastics, and synthetic fibers. The Petroleum Products segment operates crude oil distillation facilities that produce vacuum and atmospheric gas oils used as feedstock; and residual oil and low octane gasoline fuels, as well as produces various fuels, such as diesel oil, jet fuel, heavy oil, and liquefied petroleum gas for transportation, industry, and household heating usage. The Trading of Petrochemical Products segment is involved in the import and export of petrochemical products. The company was founded in 1972 and is based in Shanghai, the People's Republic of China. Sinopec Shanghai Petrochemical Company Limited is a subsidiary of China Petroleum & Chemical Corporation.

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