Critical Review: Olin (NYSE:OLN) vs. ICL Group (NYSE:ICL)

ICL Group (NYSE:ICL) and Olin (NYSE:OLN) are both mid-cap materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares ICL Group and Olin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICL Group	3.95%	8.40%	4.19%
Olin	-2.08%	-4.76%	-1.17%

Risk and Volatility

ICL Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Olin has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

13.4% of ICL Group shares are held by institutional investors. Comparatively, 88.7% of Olin shares are held by institutional investors. 0.3% of ICL Group shares are held by insiders. Comparatively, 1.6% of Olin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for ICL Group and Olin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICL Group	0	2	0	0	2.00
Olin	4	10	1	1	1.94

ICL Group presently has a consensus price target of $6.00, suggesting a potential upside of 12.25%. Olin has a consensus price target of $23.08, suggesting a potential upside of 20.76%. Given Olin’s higher possible upside, analysts clearly believe Olin is more favorable than ICL Group.

Valuation and Earnings

This table compares ICL Group and Olin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICL Group	$7.71 billion	0.89	$226.00 million	$0.24	22.27
Olin	$6.78 billion	0.32	-$100.50 million	($1.23)	-15.54

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

Dividends

ICL Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.2%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. ICL Group pays out 70.8% of its earnings in the form of a dividend. Olin pays out -65.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

ICL Group beats Olin on 9 of the 17 factors compared between the two stocks.

About ICL Group

ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The Growing Solutions segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.