Valhi Inc. (VHI)’s Financial Results Comparing With FutureFuel Corp. (NYSE:FF)

This is therefore a comparing of the dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation in Valhi Inc. (NYSE:VHI) and FutureFuel Corp. (NYSE:FF). The two are both Chemicals – Major Diversified companies that compete with one another.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valhi Inc. 1.83B 0.41 194.60M 0.84 2.66
FutureFuel Corp. 283.77M 1.64 22.84M 1.22 9.56

Table 1 highlights Valhi Inc. and FutureFuel Corp.’s gross revenue, earnings per share and valuation. FutureFuel Corp. seems to has lower revenue, but higher earnings compared to Valhi Inc. The business that is currently more affordable of the two stocks is the one that has a lower price-to-earnings ratio. Valhi Inc.’s currently lower price-to-earnings ratio means it is more affordable than FutureFuel Corp.

Profitability

Table 2 shows us the return on assets, return on equity and net margins of both businesses.

Net Margins Return on Equity Return on Assets
Valhi Inc. 10.63% 0% 0%
FutureFuel Corp. 8.05% 17.3% 14.1%

Risk & Volatility

Valhi Inc. is 206.00% more volatile than Standard and Poor’s 500 due to its 3.06 beta. From a competition point of view, FutureFuel Corp. has a 1.74 beta which is 74.00% more volatile compared to Standard and Poor’s 500.

Liquidity

Valhi Inc.’s Current Ratio is 4 while its Quick Ratio is 2.5. On the competitive side is, FutureFuel Corp. which has a 9.2 Current Ratio and a 8.2 Quick Ratio. FutureFuel Corp. is better positioned to pay off short and long-term obligations compared to Valhi Inc.

Dividends

Valhi Inc. pays out $0.08 per share annually while its annual dividend yield is 3.59%. FutureFuel Corp. also pays out annual dividends at $0.24 per share and at a 2.23% dividend yield.

Institutional and Insider Ownership

Institutional investors held 3.4% of Valhi Inc. shares and 47.8% of FutureFuel Corp. shares. Insiders held 91.55% of Valhi Inc. shares. Insiders Comparatively, held 0.1% of FutureFuel Corp. shares.

Performance

Here are 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)
Valhi Inc. -5.11% -15.53% -32.22% 6.19% -68.77% 15.54%
FutureFuel Corp. -17.3% -18.97% -35.16% -29.79% -2.35% -26.73%

For the past year Valhi Inc. had bullish trend while FutureFuel Corp. had bearish trend.

Summary

On 10 of the 15 factors FutureFuel Corp. beats Valhi Inc.

Valhi, Inc. engages in the chemicals, component products, waste management, and real estate businesses worldwide. The companyÂ’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the Kronos name through agents and distributors. This segment also offers iron-based chemicals, titanium oxychlorides, and titanyl sulfates. Its Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. This segment also provides stainless steel exhaust components, gauges, throttle controls, trim tabs, hardware, and accessories primarily for performance and ski/wakeboard boats. The companyÂ’s Waste Management segment processes, treats, stores, and disposes radioactive, hazardous, toxic, and other wastes. This segment serves industrial companies, such as nuclear utilities, chemical, aerospace and electronics businesses, and governmental agencies. Its Real Estate Management and Development segment provides utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. Valhi, Inc. also offers insurance brokerage and risk management services, and holds marketable securities and other investments. The company was founded in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Contran Corporation.

FutureFuel Corp., through its subsidiaries, manufactures and sells diversified chemical products, bio-based products, and bio-based specialty chemical products in the United States. It operates in two segments, Chemicals and Biofuels. The Chemicals segment manufactures and sells custom chemicals, including agrochemicals and intermediates, detergent additives, biocides intermediates, specialty polymers, dyes, stabilizers, and chemicals intermediates; and chemicals used in consumer products consisting of cosmetics and personal care products, specialty polymers, and specialty products used in the fuels industry. This segment also offers performance chemicals, such as polymer modifiers that enhance stain resistance and dye-ability to nylon and polyester fibers; various small-volume specialty chemicals and solvents for a range of applications; and a family of acetal based solvents, including diethoxymethane, dimethoxymethane, dibutoxymethane, glycerol formal, and phenol sulfonic acid. Its chemical products are used in various markets and end uses comprising detergent, agrochemical, automotive, oil and gas, coatings, nutrition, and polymer additives. The Biofuels segment produces and sells biodiesel. This segment also sells petrodiesel in blends; and engages in buying, selling, and shipping of refined petroleum products on common carrier pipelines. The Biofuels segment markets its biodiesel products directly to customers through railcars, tank trucks, and barges in the United States. The company was formerly known as Viceroy Acquisition Corporation and changed its name to FutureFuel Corp. in October 2006. FutureFuel Corp. was incorporated in 2005 and is headquartered in Clayton, Missouri.

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