Methanex (NASDAQ:MEOH – Get Free Report) and Enlightify (NYSE:ENFY – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility & Risk
Methanex has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Enlightify has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares Methanex and Enlightify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Methanex | 5.97% | 9.07% | 3.41% |
| Enlightify | -22.98% | -18.78% | -11.03% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Methanex | $3.72 billion | 0.89 | $163.99 million | $2.95 | 14.55 |
| Enlightify | $79.21 million | 0.01 | -$28.41 million | ($0.86) | -0.06 |
Methanex has higher revenue and earnings than Enlightify. Enlightify is trading at a lower price-to-earnings ratio than Methanex, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
73.5% of Methanex shares are held by institutional investors. Comparatively, 0.1% of Enlightify shares are held by institutional investors. 1.0% of Methanex shares are held by company insiders. Comparatively, 14.2% of Enlightify shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Methanex and Enlightify, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Methanex | 0 | 3 | 9 | 1 | 2.85 |
| Enlightify | 1 | 0 | 0 | 0 | 1.00 |
Methanex currently has a consensus price target of $46.55, indicating a potential upside of 8.42%. Given Methanex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Methanex is more favorable than Enlightify.
Summary
Methanex beats Enlightify on 13 of the 15 factors compared between the two stocks.
About Methanex
Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.
About Enlightify
Enlightify, Inc. engages in the research, development, production, and sale of various types of fertilizers and agricultural products. It operates through the following segments: Jinong, Gufeng, and Yuxing. The Jinong segment includes fertilizer products, with focus on humic acid-based compound fertilizer. The Gufeng segment refers to the compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer. The Yuxing segment develops and produces agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. The company was founded by Tao Li on February 6, 1987 and is headquartered in Xi’an, China.
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