Critical Contrast: PolyOne (POL) versus Its Peers

PolyOne (NYSE: POL) is one of 14 public companies in the “Plastics materials & resins” industry, but how does it compare to its rivals? We will compare PolyOne to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.

Insider & Institutional Ownership

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93.9% of PolyOne shares are held by institutional investors. Comparatively, 80.9% of shares of all “Plastics materials & resins” companies are held by institutional investors. 1.3% of PolyOne shares are held by company insiders. Comparatively, 1.6% of shares of all “Plastics materials & resins” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PolyOne and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PolyOne 0 3 4 0 2.57
PolyOne Competitors 42 358 658 22 2.61

PolyOne presently has a consensus target price of $45.00, indicating a potential upside of 5.68%. As a group, “Plastics materials & resins” companies have a potential upside of 19.99%. Given PolyOne’s rivals stronger consensus rating and higher possible upside, analysts plainly believe PolyOne has less favorable growth aspects than its rivals.

Dividends

PolyOne pays an annual dividend of $0.70 per share and has a dividend yield of 1.6%. PolyOne pays out 31.7% of its earnings in the form of a dividend. As a group, “Plastics materials & resins” companies pay a dividend yield of 2.2% and pay out 30.6% of their earnings in the form of a dividend. PolyOne has increased its dividend for 6 consecutive years. PolyOne lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares PolyOne and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PolyOne -1.73% 29.46% 6.68%
PolyOne Competitors 6.60% 23.59% 8.10%

Volatility and Risk

PolyOne has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, PolyOne’s rivals have a beta of -2.66, suggesting that their average share price is 366% less volatile than the S&P 500.

Earnings and Valuation

This table compares PolyOne and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PolyOne $3.23 billion -$57.70 million 19.27
PolyOne Competitors $9.05 billion $413.23 million 16.98

PolyOne’s rivals have higher revenue and earnings than PolyOne. PolyOne is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

PolyOne rivals beat PolyOne on 11 of the 15 factors compared.

About PolyOne

PolyOne Corporation (PolyOne) provides specialized polymer materials, services and solutions. The Company’s segments include Color, Additives and Inks; Specialty Engineered Materials; Performance Products and Solutions, and PolyOne Distribution. The Color, Additives and Inks segment provides custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets. The Specialty Engineered Materials segment provides specialty polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials. The Performance Products and Solutions segment consists of the Geon Performance Materials and Producer Services business units. As of December 31, 2016, the PolyOne Distribution segment distributed more than 4,000 grades of engineering and commodity grade resins.

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