Cabot (NYSE:CBT – Get Free Report) and Zentek (NASDAQ:ZTEK – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Cabot and Zentek’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cabot | $4.32 billion | 0.90 | $209.00 million | $5.55 | 12.48 |
| Zentek | $50,000.00 | 3,165.05 | -$10.90 million | ($0.10) | -15.90 |
Cabot has higher revenue and earnings than Zentek. Zentek is trading at a lower price-to-earnings ratio than Cabot, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cabot | 7.51% | 28.94% | 9.14% |
| Zentek | N/A | -49.84% | -44.65% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Cabot and Zentek, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cabot | 0 | 1 | 3 | 0 | 2.75 |
| Zentek | 0 | 0 | 0 | 0 | N/A |
Cabot currently has a consensus target price of $89.25, indicating a potential upside of 28.89%. Given Cabot’s higher probable upside, equities research analysts clearly believe Cabot is more favorable than Zentek.
Insider and Institutional Ownership
91.0% of Cabot shares are held by institutional investors. Comparatively, 0.7% of Zentek shares are held by institutional investors. 2.7% of Cabot shares are held 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.
Risk & Volatility
Cabot has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Zentek has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Summary
Cabot beats Zentek on 12 of the 13 factors compared between the two stocks.
About Cabot
Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, cables, plastics, adhesives, toners, batteries, and displays applications; conductive carbon additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
About Zentek
Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops graphene oxide synthesis and graphene synthesis. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Thunder Bay, Canada.
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