Comparing SHOWA DENKO KK/ADR (OTCMKTS:SHWDY) & FMC (OTCMKTS:FMC)

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SHOWA DENKO KK/ADR (OTCMKTS:SHWDY) and FMC (NYSE:FMC) are both large-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares SHOWA DENKO KK/ADR and FMC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SHOWA DENKO KK/ADR $8.99 billion 4.51 $1.00 billion $8.92 3.04
FMC $4.73 billion 2.67 $502.10 million $6.29 15.51

SHOWA DENKO KK/ADR has higher revenue and earnings than FMC. SHOWA DENKO KK/ADR is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SHOWA DENKO KK/ADR and FMC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SHOWA DENKO KK/ADR 0 1 0 0 2.00
FMC 0 3 14 0 2.82

FMC has a consensus target price of $99.75, suggesting a potential upside of 2.24%. Given FMC’s stronger consensus rating and higher possible upside, analysts plainly believe FMC is more favorable than SHOWA DENKO KK/ADR.

Risk & Volatility

SHOWA DENKO KK/ADR has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, FMC has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares SHOWA DENKO KK/ADR and FMC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SHOWA DENKO KK/ADR N/A N/A N/A
FMC 11.08% 27.94% 8.11%

Dividends

SHOWA DENKO KK/ADR pays an annual dividend of $0.68 per share and has a dividend yield of 2.5%. FMC pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. SHOWA DENKO KK/ADR pays out 7.6% of its earnings in the form of a dividend. FMC pays out 25.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SHOWA DENKO KK/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

88.0% of FMC shares are owned by institutional investors. 1.5% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

FMC beats SHOWA DENKO KK/ADR on 9 of the 16 factors compared between the two stocks.

SHOWA DENKO KK/ADR Company Profile

Showa Denko K.K. operates as a chemical company in Japan and internationally. It operates in six segments: Petrochemicals, Chemicals, Electronics, Inorganics, Aluminum, and Others. The Petrochemicals segment offers olefins, including ethylene, propylene, C4 fraction, cracked fuel oils, etc.; and organic chemicals, including vinyl acetate monomer, vinyl and ethyl acetate, allyl alcohol, acetaldehyde, acetic acid, and allyl ester resins, as well as polypropylene. The Chemicals segment provides functional chemicals, such as polymer emulsion and unsaturated polyester resins; industrial gases comprising liquefied carbon dioxide, dry ice, oxygen, nitrogen, hydrogen, argon, fusing ethylene, and helium; basic chemicals that include liquefied ammonia, acrylonitrile, and chloroprene rubber; and electronic chemicals, which comprise high-purity gases for electronics. The Electronics segment offers aluminum based and glass based hard disks (HDs); aluminum substrates for HDs; LED chips, epitaxial wafers, rare earth magnetic alloys, and lithium-ion battery materials; MOCVD epitaxial wafers; and advanced battery materials. The Inorganics segment provides alumina electrical fillers fused materials, abrasive grains lapping and polishing materials, plasma spraying materials, refractories, alumina for heat-radiation fillers, spherical alumina, hexagonal boron nitride, lubrication and mold-release agents, and polishing materials; and graphite electrodes. The Aluminum segment offers aluminum capacitor foils and aluminum sheets; extruded and forged products, aluminum cylinders, cast rods of aluminum alloys, compressors, heat exchangers, and power semiconductor cooling devices; and aluminum beverage cans. The Others segment engages in the general trading and building materials business; and sells chemicals, resins, metals, and electronic materials. The company was founded in 1908 and is headquartered in Tokyo, Japan.

FMC Company Profile

FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets worldwide. The company operates in two segments, FMC Agricultural Solutions and FMC Lithium. The FMC Agricultural Solutions segment develops, manufactures, markets, and sells crop protection chemicals, including insecticides, herbicides, and fungicides that are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The FMC Lithium segment manufactures lithium for use in batteries, polymers, pharmaceuticals, greases and lubricants, glass and ceramics, and other industrial applications. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

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