Financial Review: Onex (OTCMKTS:ONEXF) and Victrex (OTCMKTS:VTXPF)

Onex (OTCMKTS:ONEXF) and Victrex (OTCMKTS:VTXPF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Onex and Victrex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onex	0	0	1	0	3.00
Victrex	0	0	1	0	3.00

Onex currently has a consensus price target of $96.00, suggesting a potential upside of 30.47%. Given Onex’s higher possible upside, equities analysts plainly believe Onex is more favorable than Victrex.

Insider & Institutional Ownership

0.7% of Onex shares are held by institutional investors. Comparatively, 0.8% of Victrex shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Onex has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Victrex has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Onex and Victrex’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onex	$1.13 billion	5.06	$529.00 million	$6.80	10.82
Victrex	$376.57 million	3.41	$75.71 million	N/A	N/A

Onex has higher revenue and earnings than Victrex.

Profitability

This table compares Onex and Victrex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onex	46.98%	8.80%	5.78%
Victrex	N/A	N/A	N/A

Summary

Onex beats Victrex on 8 of the 9 factors compared between the two stocks.

About Onex

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.

About Victrex

Victrex plc, through its subsidiaries, engages in the manufacture and sale of polymer solutions worldwide. The company operates through two segments, Sustainable Solutions and Medical. It develops PEEK and PAEK based polymer solutions, and semi-finished and finished parts. The company also provides specialist solutions for medical device manufacturers; sells thermoplastic polymers; sustainable solutions for energy and industrial, VAR, automotive, aerospace, and electronics markets; and engages in trading activities. It serves automotive, aerospace, energy and industrial, electronics, and medical markets. Victrex plc was incorporated in 1993 and is headquartered in Thornton-Cleveleys, the United Kingdom.