Reviewing W. R. Grace & Co. (GRA)’s and Cabot Corporation (NYSE:CBT)’s results

As Specialty Chemicals companies, W. R. Grace & Co. (NYSE:GRA) and Cabot Corporation (NYSE:CBT) are our subject to compare. And more specifically their dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W. R. Grace & Co. 1.93B 2.66 167.60M 2.76 28.11
Cabot Corporation 3.34B 0.85 77.00M 0.57 83.40

Table 1 highlights W. R. Grace & Co. and Cabot Corporation’s top-line revenue, earnings per share and valuation. Cabot Corporation is observed to has lower earnings, but higher revenue than W. R. Grace & Co. When company has lower price-to-earnings means it is more affordable than its counterpart currently. W. R. Grace & Co.’s shares have been trading at lower price-to-earnings ratio which means it is currently more affordable than Cabot Corporation.

Profitability

Table 2 demonstrates the return on assets, net margins and return on equity of W. R. Grace & Co. and Cabot Corporation.

Net Margins Return on Equity Return on Assets
W. R. Grace & Co. 8.68% 2.6% 0.2%
Cabot Corporation 2.31% 6.6% 2.4%

Volatility & Risk

W. R. Grace & Co. has a 1.06 beta, while its volatility is 6.00%, thus making it more volatile than Standard & Poor’s 500. Cabot Corporation on the other hand, has 1.39 beta which makes it 39.00% more volatile compared to Standard & Poor’s 500.

Liquidity

W. R. Grace & Co.’s Current Ratio is 1.6 while its Quick Ratio is 1. On the competitive side is, Cabot Corporation which has a 1.3 Current Ratio and a 0.8 Quick Ratio. W. R. Grace & Co. is better positioned to pay off short and long-term obligations compared to Cabot Corporation.

Dividends

W. R. Grace & Co. shareholders receive an annual dividend of $0.96 per share which is subject to 1.24% dividend yield. On the other side, $1.3 per share with a dividend yield of 2.76% for Cabot Corporation.

Analyst Ratings

The table delivered features the ratings and recommendations for W. R. Grace & Co. and Cabot Corporation.

Sell Ratings Hold Ratings Buy Ratings Rating Score
W. R. Grace & Co. 0 0 2 3.00
Cabot Corporation 0 0 0 0.00

W. R. Grace & Co.’s upside potential currently stands at 13.33% and an $87 average price target.

Institutional & Insider Ownership

Institutional investors owned 90.9% of W. R. Grace & Co. shares and 90.1% of Cabot Corporation shares. Insiders owned 0.96% of W. R. Grace & Co. shares. Comparatively, 1.3% are Cabot Corporation’s share owned by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
W. R. Grace & Co. -0.6% 9.08% 24.21% 8.12% 17.42% 19.33%
Cabot Corporation -0.46% 1.39% -1.37% -27.5% -21.03% 10.71%

For the past year W. R. Grace & Co. was more bullish than Cabot Corporation.

Summary

W. R. Grace & Co. beats Cabot Corporation on 9 of the 16 factors.

W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide. It operates through two segments, Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment offers fluid catalytic cracking (FCC) catalysts for the production of transportation fuels, such as gasoline and diesel fuels, and other petroleum-based products; FCC additives; and hydro processing catalysts used in process reactors to upgrade heavy oils into lighter products. This segment also provides polyolefin catalysts and catalyst supports for the production of polypropylene and polyethylene thermoplastic resins; and chemical catalysts used in various industrial, environmental, and consumer applications, as well as gas-phase polypropylene process technology to manufacture polypropylene products. The Grace Materials Technologies segment offers silica-based and silica-alumina-based materials for use in coatings, consumer, industrial, and pharmaceutical applications. W. R. Grace & Co. was founded in 1854 and is headquartered in Columbia, Maryland.