Reviewing Olin (NYSE:OLN) & Scotts Miracle-Gro (NYSE:SMG)

Scotts Miracle-Gro (NYSE:SMGGet Free Report) and Olin (NYSE:OLNGet Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Earnings & Valuation

This table compares Scotts Miracle-Gro and Olin”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scotts Miracle-Gro $3.41 billion 0.90 $145.20 million $1.15 45.97
Olin $6.78 billion 0.28 -$100.50 million ($1.23) -13.63

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

Profitability

This table compares Scotts Miracle-Gro and Olin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scotts Miracle-Gro 2.19% -81.90% 8.97%
Olin -2.08% -4.76% -1.17%

Institutional & Insider Ownership

74.1% of Scotts Miracle-Gro shares are owned by institutional investors. Comparatively, 88.7% of Olin shares are owned by institutional investors. 24.4% of Scotts Miracle-Gro shares are owned by company insiders. Comparatively, 1.6% of Olin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Scotts Miracle-Gro pays an annual dividend of $2.64 per share and has a dividend yield of 5.0%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 4.8%. Scotts Miracle-Gro pays out 229.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Olin pays out -65.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Scotts Miracle-Gro and Olin, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scotts Miracle-Gro 0 3 3 0 2.50
Olin 3 11 1 1 2.00

Scotts Miracle-Gro presently has a consensus target price of $75.40, indicating a potential upside of 42.63%. Olin has a consensus target price of $21.77, indicating a potential upside of 29.84%. Given Scotts Miracle-Gro’s stronger consensus rating and higher possible upside, research analysts plainly believe Scotts Miracle-Gro is more favorable than Olin.

Risk and Volatility

Scotts Miracle-Gro has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Olin has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

Scotts Miracle-Gro beats Olin on 12 of the 17 factors compared between the two stocks.

About Scotts Miracle-Gro

(Get Free Report)

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

About Olin

(Get Free Report)

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.

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