Tronox (TROX) versus Its Competitors Head-To-Head Analysis

Tronox (NYSE:TROX) is one of 296 publicly-traded companies in the “Chemicals” industry, but how does it contrast to its rivals? We will compare Tronox to similar businesses based on the strength of its dividends, risk, institutional ownership, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Tronox and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tronox	-15.86%	-25.02%	-5.31%
Tronox Competitors	-54.14%	-0.61%	-1.37%

Earnings and Valuation

This table compares Tronox and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tronox	$2.90 billion	-$470.00 million	-0.83
Tronox Competitors	$6.34 billion	$229.42 million	19.99

Tronox’s rivals have higher revenue and earnings than Tronox. Tronox is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tronox and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	4	4	1	0	1.67
Tronox Competitors	3272	12239	14149	521	2.39

Tronox presently has a consensus price target of $5.04, suggesting a potential upside of 92.58%. As a group, “Chemicals” companies have a potential upside of 7.69%. Given Tronox’s higher probable upside, equities analysts clearly believe Tronox is more favorable than its rivals.

Insider and Institutional Ownership

73.4% of Tronox shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 2.0% of Tronox shares are held by company insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 7.6%. Tronox pays out -6.3% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend. Tronox is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

Tronox has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Tronox’s rivals have a beta of 0.94, meaning that their average stock price is 6% less volatile than the S&P 500.

Summary

Tronox rivals beat Tronox on 9 of the 15 factors compared.

Tronox Company Profile

Tronox Holdings plc is a vertically integrated producer of titanium dioxide (TiO₂) pigment and mineral-sands products. Its operations span the value chain from mining titanium-bearing mineral sands to processing them into feedstocks and finished products. The company’s products include TiO₂ pigment, used to add whiteness, brightness and opacity to paints, coatings, plastics and other materials. Tronox also produces titanium feedstocks such as chloride-grade slag and synthetic rutile, as well as zircon, which is used in ceramics and other applications.