Trecora Resources (NYSE: TREC) and CSW Industrials (NASDAQ:CSWI) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
36.0% of Trecora Resources shares are held by institutional investors. Comparatively, 66.9% of CSW Industrials shares are held by institutional investors. 6.6% of Trecora Resources shares are held by company insiders. Comparatively, 2.1% of CSW Industrials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Trecora Resources and CSW Industrials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trecora Resources | 0.97% | 3.94% | 2.23% |
| CSW Industrials | 4.54% | 10.53% | 7.39% |
Volatility and Risk
Trecora Resources has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, CSW Industrials has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Valuation and Earnings
This table compares Trecora Resources and CSW Industrials’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Trecora Resources | $229.00 million | 1.34 | $26.34 million | $0.09 | 140.57 |
| CSW Industrials | $341.00 million | 1.84 | $58.23 million | $0.98 | 40.46 |
CSW Industrials has higher revenue and earnings than Trecora Resources. CSW Industrials is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Trecora Resources and CSW Industrials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trecora Resources | 0 | 0 | 3 | 0 | 3.00 |
| CSW Industrials | 0 | 0 | 1 | 0 | 3.00 |
Trecora Resources currently has a consensus price target of $15.67, suggesting a potential upside of 23.85%. Given Trecora Resources’ higher possible upside, equities analysts clearly believe Trecora Resources is more favorable than CSW Industrials.
Summary
CSW Industrials beats Trecora Resources on 8 of the 13 factors compared between the two stocks.
Trecora Resources Company Profile
Trecora Resources is engaged in manufacturing of specialty petrochemical products and synthetic waxes, and providing custom processing services. The Company operates through two segments: manufacturing of various specialty petrochemical products and manufacturing of specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. TC provides custom manufacturing, distillation, blending, forming, and packaging of finished and intermediate products, and wax products for coatings, hot melt adhesives and lubricants.
CSW Industrials Company Profile
CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.
Receive News & Ratings for Trecora Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Trecora Resources and related companies with MarketBeat.com's FREE daily email newsletter.
