Financial Survey: Givaudan (OTCMKTS:GVDNY) vs. Axalta Coating Systems (NYSE:AXTA)

by · The Markets Daily

Axalta Coating Systems (NYSE:AXTAGet Free Report) and Givaudan (OTCMKTS:GVDNYGet Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Axalta Coating Systems and Givaudan, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Axalta Coating Systems091002.53
Givaudan00223.50

Axalta Coating Systems currently has a consensus price target of $36.19, suggesting a potential upside of 12.87%. Given Axalta Coating Systems’ higher probable upside, equities research analysts plainly believe Axalta Coating Systems is more favorable than Givaudan.

Profitability

This table compares Axalta Coating Systems and Givaudan’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Axalta Coating Systems8.81%24.92%7.19%
GivaudanN/AN/AN/A

Insider and Institutional Ownership

98.3% of Axalta Coating Systems shares are held by institutional investors. Comparatively, 0.0% of Givaudan shares are held by institutional investors. 0.3% of Axalta Coating Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Axalta Coating Systems and Givaudan”s revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Axalta Coating Systems$5.28 billion1.30$391.00 million$2.0915.34
Givaudan$8.42 billion4.31$1.24 billionN/AN/A

Givaudan has higher revenue and earnings than Axalta Coating Systems.

Risk & Volatility

Axalta Coating Systems has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Summary

Axalta Coating Systems beats Givaudan on 8 of the 13 factors compared between the two stocks.

About Axalta Coating Systems

(Get Free Report)

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

About Givaudan

(Get Free Report)

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.