Reviewing Nexeo Solutions (NXEO) and The Competition

Nexeo Solutions (NASDAQ: NXEO) is one of 24 publicly-traded companies in the “Chemicals & allied products” industry, but how does it contrast to its peers? We will compare Nexeo Solutions to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Profitability

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This table compares Nexeo Solutions and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexeo Solutions 1.30% 22.12% 1.94%
Nexeo Solutions Competitors -118.84% 22.38% 5.09%

Analyst Ratings

This is a breakdown of current ratings for Nexeo Solutions and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexeo Solutions 0 2 2 0 2.50
Nexeo Solutions Competitors 104 476 707 27 2.50

Nexeo Solutions presently has a consensus target price of $11.17, indicating a potential upside of 13.95%. As a group, “Chemicals & allied products” companies have a potential upside of 12.64%. Given Nexeo Solutions’ higher probable upside, equities research analysts clearly believe Nexeo Solutions is more favorable than its peers.

Insider & Institutional Ownership

94.8% of Nexeo Solutions shares are held by institutional investors. Comparatively, 76.3% of shares of all “Chemicals & allied products” companies are held by institutional investors. 0.6% of Nexeo Solutions shares are held by company insiders. Comparatively, 5.8% of shares of all “Chemicals & allied products” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Nexeo Solutions has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Nexeo Solutions’ peers have a beta of 1.08, indicating that their average stock price is 8% more volatile than the S&P 500.

Earnings & Valuation

This table compares Nexeo Solutions and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nexeo Solutions $3.64 billion $14.40 million 29.70
Nexeo Solutions Competitors $7.12 billion $610.16 million 24.18

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

Summary

Nexeo Solutions peers beat Nexeo Solutions on 9 of the 12 factors compared.

About Nexeo Solutions

Nexeo Solutions, Inc. operates as a chemical and plastic products distributor in North America, Europe, the Middle East, Africa, and Asia. The company operates through Chemicals, Plastics, and Environmental Services segments. It provides approximately 22,000 products used in various industries, including household, industrial and institutional, lubricants, architectural coatings, adhesives, sealants, elastomers, automotive, healthcare, personal care, oil and gas, and construction. The company was formerly known as WL Ross Holding Corp. and changed its name to Nexeo Solutions, Inc. in June 2016. Nexeo Solutions, Inc. was founded in 2014 and is based in The Woodlands, Texas.