Contrasting Incitec Pivot (OTCMKTS:INCZY) and Neo Performance Materials (OTCMKTS:NOPMF)

Neo Performance Materials (OTCMKTS:NOPMF) and Incitec Pivot (OTCMKTS:INCZY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Neo Performance Materials and Incitec Pivot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neo Performance Materials	-1.30%	3.71%	2.32%
Incitec Pivot	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Neo Performance Materials and Incitec Pivot, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neo Performance Materials	0	1	1	0	2.50
Incitec Pivot	0	0	0	0	0.00

Dividends

Neo Performance Materials pays an annual dividend of $0.29 per share and has a dividend yield of 2.0%. Incitec Pivot pays an annual dividend of $0.08 per share and has a dividend yield of 3.8%. Neo Performance Materials pays out -170.6% of its earnings in the form of a dividend. Incitec Pivot pays out 50.3% 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.

Institutional and Insider Ownership

0.0% of Incitec Pivot shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Neo Performance Materials and Incitec Pivot”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neo Performance Materials	$475.83 million	1.29	-$12.95 million	($0.17)	-86.94
Incitec Pivot	N/A	N/A	N/A	$0.15	13.23

Incitec Pivot has lower revenue, but higher earnings than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than Incitec Pivot, indicating that it is currently the more affordable of the two stocks.

Summary

Neo Performance Materials beats Incitec Pivot on 6 of the 11 factors compared between the two stocks.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

About Incitec Pivot

Incitec Pivot Limited, together with its subsidiaries, manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia, the United States, the Asia Pacific, Turkey, France, and internationally. It offers ammonium nitrate, nitrogen-based fertilizer, ammonia, di/mono-ammonium phosphate, and single super phosphate. The company also manufactures and sells industrial explosives, and related products and services to mining, quarrying, and construction industries. In addition, it offers industrial chemicals to the agriculture and specialist industries. The company was founded in 1831 and is headquartered in Southbank, Australia.