Cabot Corporation (CBT)’s Financial Results Comparing With Ferro Corporation (NYSE:FOE)

We will be contrasting the differences between Cabot Corporation (NYSE:CBT) and Ferro Corporation (NYSE:FOE) as far as analyst recommendations, profitability, risk, institutional ownership, dividends, earnings and valuation are concerned. The two businesses are rivals in the Specialty Chemicals industry.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Corporation 3.34B 0.77 77.00M 0.72 62.93
Ferro Corporation 1.59B 0.87 60.43M 0.96 17.85

We can see in table 1 the earnings per share, top-line revenue and valuation of Cabot Corporation and Ferro Corporation. Ferro Corporation has lower revenue, but higher earnings than Cabot Corporation. Company that currently has a higher P/E ratio means that it is the more expensive of the two businesses. Cabot Corporation’s currently higher P/E ratio makes it the more expensive of the two businesses.

Profitability

Table 2 provides the return on equity, net margins and return on assets of the two firms.

Net Margins Return on Equity Return on Assets
Cabot Corporation 2.31% -9.4% -3.6%
Ferro Corporation 3.80% 16.3% 3.4%

Risk & Volatility

A beta of 1.47 shows that Cabot Corporation is 47.00% more volatile than S&P 500. Competitively, Ferro Corporation’s 77.00% volatility makes it more volatile than S&P 500, because of the 1.77 beta.

Liquidity

Cabot Corporation’s Current Ratio and Quick Ratio are 1.5 and 0.9 respectively. The Current Ratio and Quick Ratio of its competitor Ferro Corporation are 2.9 and 1.8 respectively. Ferro Corporation therefore has a better chance of paying off short and long-term obligations compared to Cabot Corporation.

Dividends

Cabot Corporation pays out an annual dividend of $1.3 per share while its dividend yield is 3.05%. No dividend is paid out by Ferro Corporation

Analyst Ratings

The following table given below contains the ratings and recommendations for Cabot Corporation and Ferro Corporation.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Cabot Corporation 0 0 1 3.00
Ferro Corporation 0 0 1 3.00

Cabot Corporation’s average target price is $76, while its potential upside is 76.17%. Meanwhile, Ferro Corporation’s average target price is $23, while its potential upside is 37.97%. The information presented earlier suggests that Cabot Corporation looks more robust than Ferro Corporation as far as analyst view.

Institutional and Insider Ownership

The shares of both Cabot Corporation and Ferro Corporation are owned by institutional investors at 91% and 0% respectively. 1% are Cabot Corporation’s share owned by insiders. Insiders Competitively, owned 0.2% of Ferro Corporation shares.

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)
Cabot Corporation -7.52% -11.72% -27.69% -28.75% -23.12% -26.12%
Ferro Corporation -11.14% -8.53% -24.12% -20.68% -27.55% -27.3%

For the past year Cabot Corporation was less bearish than Ferro Corporation.

Ferro Corporation produces specialty materials in the United States and internationally. It operates through four business units: Tile Coating Systems; Porcelain Enamel; Performance Colors and Glass; and Pigments, Powders and Oxides. The company offers frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, dielectrics, electronic glasses, and other specialty coatings. Its products are used in appliances, automobiles, building and renovation, electronics, household furnishings, industrial products, and packaging. The company markets and sells its products directly, as well as through agents and distributors. It serves manufacturers of ceramic tile, major appliances, construction materials, automobile parts, automobiles, architectural and container glass, and electronic components and devices. Ferro Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio.

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