Huntsman (NYSE:HUN – Get Free Report) and ICL Group (NYSE:ICL – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Dividends
Huntsman pays an annual dividend of $0.35 per share and has a dividend yield of 4.1%. ICL Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.4%. Huntsman pays out -33.7% of its earnings in the form of a dividend. ICL Group pays out 70.8% 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. Huntsman has raised its dividend for 4 consecutive years. Huntsman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Huntsman has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, ICL Group has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Valuation & Earnings
This table compares Huntsman and ICL Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Huntsman | $5.90 billion | 0.25 | -$284.00 million | ($1.04) | -8.24 |
| ICL Group | $7.15 billion | 0.90 | $226.00 million | $0.24 | 20.69 |
ICL Group has higher revenue and earnings than Huntsman. Huntsman is trading at a lower price-to-earnings ratio than ICL Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Huntsman and ICL Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Huntsman | -3.05% | -3.49% | -1.45% |
| ICL Group | 3.95% | 8.40% | 4.19% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Huntsman and ICL Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Huntsman | 4 | 9 | 2 | 1 | 2.00 |
| ICL Group | 0 | 2 | 0 | 0 | 2.00 |
Huntsman currently has a consensus target price of $11.29, indicating a potential upside of 31.63%. ICL Group has a consensus target price of $6.00, indicating a potential upside of 20.85%. Given Huntsman’s higher possible upside, analysts clearly believe Huntsman is more favorable than ICL Group.
Insider and Institutional Ownership
84.8% of Huntsman shares are owned by institutional investors. Comparatively, 13.4% of ICL Group shares are owned by institutional investors. 6.8% of Huntsman shares are owned by insiders. Comparatively, 0.3% of ICL Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
ICL Group beats Huntsman on 9 of the 17 factors compared between the two stocks.
About Huntsman
Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.
About ICL Group
ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The Growing Solutions segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.
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