Head-To-Head Review: Corbion (OTCMKTS:CSNVY) and Arcadium Lithium (NYSE:ALTM)

Corbion (OTCMKTS:CSNVY) and Arcadium Lithium (NYSE:ALTM) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Corbion and Arcadium Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corbion	N/A	N/A	N/A
Arcadium Lithium	N/A	N/A	N/A

Insider & Institutional Ownership

27.0% of Arcadium Lithium shares are owned by institutional investors. 0.4% of Arcadium Lithium shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Corbion pays an annual dividend of $0.67 per share and has a dividend yield of 2.9%. Arcadium Lithium pays an annual dividend of $6.00 per share and has a dividend yield of 102.7%. Corbion pays out 128.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arcadium Lithium pays out 7,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and target prices for Corbion and Arcadium Lithium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corbion	0	0	0	0	0.00
Arcadium Lithium	0	10	0	0	2.00

Arcadium Lithium has a consensus target price of $11.00, suggesting a potential upside of 88.20%. Given Arcadium Lithium’s stronger consensus rating and higher possible upside, analysts clearly believe Arcadium Lithium is more favorable than Corbion.

Valuation and Earnings

This table compares Corbion and Arcadium Lithium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corbion	N/A	N/A	N/A	$0.52	43.82
Arcadium Lithium	$1.21 billion	5.21	$86.05 million	$0.08	73.06

Arcadium Lithium has higher revenue and earnings than Corbion. Corbion is trading at a lower price-to-earnings ratio than Arcadium Lithium, indicating that it is currently the more affordable of the two stocks.

Summary

Arcadium Lithium beats Corbion on 7 of the 9 factors compared between the two stocks.

About Corbion

Corbion N.V. provides lactic acid and lactic acid derivatives, other ferment, functional enzyme blends, minerals, vitamins, and algae ingredients worldwide. It offers ingredient solutions for the food, home and personal care, animal nutrition, supplements, pharmaceuticals, medical devices, and bioplastics markets. The company markets its products through a network of sales offices and distributors. The company was formerly known as CSM N.V. and changed its name to Corbion N.V. in October 2013. Corbion N.V. was incorporated in 1919 and is headquartered in Amsterdam, the Netherlands.

About Arcadium Lithium

Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications. The company also owns interest in various properties located in Argentina, Canada, and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland.