Head to Head Review: Arkema (ARKAY) and Its Peers

Arkema (OTCMKTS:ARKAY) is one of 295 public companies in the “Chemicals” industry, but how does it compare to its competitors? We will compare Arkema to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

48.0% of shares of all “Chemicals” companies are held by institutional investors. 14.1% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Arkema and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arkema	$10.26 billion	$71.28 million	217.31
Arkema Competitors	$7.99 billion	$222.31 million	-3.41

Arkema has higher revenue, but lower earnings than its competitors. Arkema is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Arkema and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arkema	0.67%	4.30%	2.15%
Arkema Competitors	-61.06%	1.32%	-1.40%

Dividends

Arkema pays an annual dividend of $3.12 per share and has a dividend yield of 5.0%. Arkema pays out 1,075.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 108.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Arkema and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arkema	1	6	0	0	1.86
Arkema Competitors	3239	12186	14103	515	2.40

As a group, “Chemicals” companies have a potential upside of 6.75%. Given Arkema’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Arkema has less favorable growth aspects than its competitors.

Risk & Volatility

Arkema has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Arkema’s competitors have a beta of 1.25, meaning that their average share price is 25% more volatile than the S&P 500.

Summary

Arkema competitors beat Arkema on 9 of the 15 factors compared.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.