Analyzing Olin (NYSE:OLN) and BioLargo (NASDAQ:BLGO)

Olin (NYSE:OLN) and BioLargo (NASDAQ:BLGO) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares Olin and BioLargo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olin	1.66%	5.10%	1.43%
BioLargo	-11.45%	-39.90%	-22.06%

Risk and Volatility

Olin has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, BioLargo has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Olin and BioLargo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	1	11	4	0	2.19
BioLargo	0	0	0	0	0.00

Olin presently has a consensus price target of $38.38, indicating a potential upside of 53.09%. Given Olin’s stronger consensus rating and higher possible upside, analysts clearly believe Olin is more favorable than BioLargo.

Earnings and Valuation

This table compares Olin and BioLargo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.54 billion	0.44	$108.60 million	$0.90	27.85
BioLargo	$12.23 million	6.04	-$3.50 million	($0.01)	-24.51

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

Institutional and Insider Ownership

88.7% of Olin shares are held by institutional investors. Comparatively, 0.0% of BioLargo shares are held by institutional investors. 1.8% of Olin shares are held by insiders. Comparatively, 20.3% of BioLargo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Olin beats BioLargo on 12 of the 14 factors compared between the two stocks.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

About BioLargo

BioLargo, Inc. invents, develops, and commercializes various platform technologies. Its technologies solve challenging environmental problems comprising per – and polyfluoroalkyl substances (PFAS) water contamination, advanced water and wastewater treatment, industrial odor and volatile organic compounds control, air quality control, infection control, and myriad environmental remediation. The company provides full-service environmental engineering services. BioLargo, Inc. was incorporated in 1991 and is based in Westminster, California.