Analyzing Braskem (NYSE:BAK) & Teekay (NYSE:TK)

Braskem (NYSE:BAK) and Teekay (NYSE:TK) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Braskem and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braskem	-14.53%	-21.95%	1.66%
Teekay	10.33%	4.76%	4.25%

Insider and Institutional Ownership

46.7% of Teekay shares are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Comparatively, 2.4% of Teekay shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braskem	$12.66 billion	0.10	-$1.77 billion	($4.61)	-0.72
Teekay	$949.52 million	1.16	$98.11 million	$1.13	11.30

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

Analyst Ratings

This is a summary of current ratings and target prices for Braskem and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braskem	3	4	0	0	1.57
Teekay	0	1	0	0	2.00

Braskem presently has a consensus price target of $3.87, indicating a potential upside of 16.29%. Given Braskem’s higher probable upside, research analysts clearly believe Braskem is more favorable than Teekay.

Volatility and Risk

Braskem has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Teekay has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Summary

Teekay beats Braskem on 10 of the 13 factors compared between the two stocks.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.