Analyzing Olin (NYSE:OLN) and Mativ (NYSE:MATV)

Olin (NYSE:OLN) and Mativ (NYSE:MATV) are both small-cap materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Dividends

Olin pays an annual dividend of $0.80 per share and has a dividend yield of 5.1%. Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 3.4%. Olin pays out -65.0% of its earnings in the form of a dividend. Mativ pays out 25.3% 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. Mativ has raised its dividend for 1 consecutive years. Olin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Olin and Mativ”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.78 billion	0.27	-$100.50 million	($1.23)	-12.85
Mativ	$1.99 billion	0.33	-$337.40 million	$1.58	7.55

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

Insider & Institutional Ownership

88.7% of Olin shares are owned by institutional investors. Comparatively, 95.0% of Mativ shares are owned by institutional investors. 1.6% of Olin shares are owned by insiders. Comparatively, 1.8% of Mativ shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Olin and Mativ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	3	11	1	0	1.87
Mativ	0	1	0	0	2.00

Olin currently has a consensus target price of $20.92, suggesting a potential upside of 32.40%. Given Olin’s higher probable upside, equities research analysts plainly believe Olin is more favorable than Mativ.

Risk and Volatility

Olin has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Mativ has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olin	-2.08%	-4.76%	-1.17%
Mativ	4.50%	13.53%	3.08%

Summary

Mativ beats Olin on 10 of the 17 factors compared between the two stocks.

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.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.