Kraton Corporation (KRA) and The Competition Head-To-Head Analysis

Kraton Corporation (NYSE: KRA) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Kraton Corporation to similar companies based on the strength of its risk, profitability, valuation, earnings, analyst recommendations, dividends and institutional ownership.

Institutional & Insider Ownership

97.8% of Kraton Corporation shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 5.0% of Kraton Corporation shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kraton Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraton Corporation 0 1 0 0 2.00
Kraton Corporation Competitors 255 1208 1321 33 2.40

As a group, “Specialty Chemicals” companies have a potential upside of 2.71%. Given Kraton Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Kraton Corporation has less favorable growth aspects than its peers.

Profitability

This table compares Kraton Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kraton Corporation 2.36% 9.52% 1.69%
Kraton Corporation Competitors -2.31% 9.09% 4.11%

Valuation and Earnings

This table compares Kraton Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kraton Corporation $1.85 billion $338.62 million 24.66
Kraton Corporation Competitors $1.95 billion $301.80 million 16.72

Kraton Corporation’s peers have higher revenue, but lower earnings than Kraton Corporation. Kraton Corporation 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.

Volatility & Risk

Kraton Corporation has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Kraton Corporation’s peers have a beta of 1.58, suggesting that their average stock price is 58% more volatile than the S&P 500.

Summary

Kraton Corporation peers beat Kraton Corporation on 8 of the 13 factors compared.

About Kraton Corporation

Kraton Corporation, formerly Kraton Performance Polymers, Inc., is a specialty chemicals company. The Company manufactures styrenic block copolymers (SBCs) and other engineered polymers. The Company also produces specialty products primarily derived from pine wood pulping co-products. The Company operates through two segments: Polymer Segment, which comprises SBCs and other engineered polymers business, and Chemical Segment, which comprises pine-based specialty products business. Its SBCs are used in a range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing and footwear products. The Company also sells isoprene rubber (IR) and isoprene rubber latex (IRL), which are non-SBC products primarily used in applications, such as medical products, personal care, adhesives, tackifiers, paints and coatings. It offers crude tall oil (CTO) and crude sulfate turpentine (CST).

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