Methanex (NASDAQ:MEOH) & Brenntag (OTCMKTS:BNTGY) Head-To-Head Analysis

Methanex (NASDAQ:MEOH) and Brenntag (OTCMKTS:BNTGY) are both mid-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Earnings & Valuation

This table compares Methanex and Brenntag”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Methanex	$3.59 billion	1.29	$79.88 million	$1.03	58.03
Brenntag	$17.16 billion	0.56	$299.37 million	$0.59	22.63

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

Dividends

Methanex pays an annual dividend of $0.74 per share and has a dividend yield of 1.2%. Brenntag pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. Methanex pays out 71.8% of its earnings in the form of a dividend. Brenntag pays out 44.1% 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. Methanex has raised its dividend for 4 consecutive years. Brenntag is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Methanex and Brenntag, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methanex	0	5	6	0	2.55
Brenntag	1	8	0	0	1.89

Methanex presently has a consensus target price of $68.56, indicating a potential upside of 14.70%. Brenntag has a consensus target price of $12.80, indicating a potential downside of 4.12%. Given Methanex’s stronger consensus rating and higher probable upside, research analysts clearly believe Methanex is more favorable than Brenntag.

Volatility and Risk

Methanex has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Brenntag has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Methanex and Brenntag’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Methanex	2.07%	11.35%	4.34%
Brenntag	2.41%	8.30%	3.32%

Institutional & Insider Ownership

73.5% of Methanex shares are owned by institutional investors. 1.0% of Methanex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Methanex beats Brenntag on 11 of the 17 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 Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.