Reviewing REX American Resources (NYSE:REX) and Solvay (OTCMKTS:SOLVY)

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

Analyst Recommendations

This is a summary of current ratings and price targets for REX American Resources and Solvay, as provided by MarketBeat.

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

REX American Resources currently has a consensus price target of $60.00, indicating a potential upside of 33.90%. Given REX American Resources’ higher probable upside, research analysts clearly believe REX American Resources is more favorable than Solvay.

Profitability

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

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

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares REX American Resources and Solvay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REX American Resources	$718.08 million	1.09	$60.94 million	$3.75	11.95
Solvay	N/A	N/A	N/A	N/A	N/A

REX American Resources has higher revenue and earnings than Solvay.

Summary

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

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.

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.