Analyzing REX American Resources (NYSE:REX) & Solvay (OTCMKTS:SOLVY)

Solvay (OTCMKTS:SOLVY) and REX American Resources (NYSE:REX) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Solvay and REX American Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solvay	N/A	N/A	N/A	N/A	N/A
REX American Resources	$718.08 million	1.13	$60.94 million	$3.75	12.40

REX American Resources has higher revenue and earnings than Solvay.

Analyst Ratings

This is a breakdown of current ratings and price targets for Solvay and REX American Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solvay	0	0	0	0	N/A
REX American Resources	0	0	1	0	3.00

REX American Resources has a consensus target price of $60.00, indicating a potential upside of 29.00%. Given REX American Resources’ higher probable upside, analysts clearly believe REX American Resources is more favorable than Solvay.

Profitability

This table compares Solvay and REX American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solvay	N/A	N/A	N/A
REX American Resources	9.64%	11.69%	10.47%

Institutional and Insider Ownership

88.1% of REX American Resources shares are owned by institutional investors. 11.7% of REX American Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

REX American Resources beats Solvay on 8 of the 8 factors compared between the two stocks.

About Solvay

Solvay SA engages in the manufacture and distribution of chemical and plastic products. It operates through the following segments: Advanced Formulations, Advanced Materials, Performance Chemicals and Corporate and Business Services. The Advanced Formulations segment offers specialty formulations that impact surface chemistry and alter liquid behavior. The Advanced Materials segment materials for multiple applications primarily in the automotive, aerospace, electronics and health markets. The Performance Chemicals segment operates in mature and resilient markets and has positions in chemical intermediates. The Corporate and Business Services segment includes corporate and other business services, such as the research & innovation center. The company was founded by Ernest Solvay in 1863 and is headquartered in Brussels, Belgium.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.