Critical Survey: Asahi Kasei (OTCMKTS:AHKSY) versus Standard Lithium (NYSE:SLI)

Standard Lithium (NYSE:SLI) and Asahi Kasei (OTCMKTS:AHKSY) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

16.8% of Standard Lithium shares are owned by institutional investors. 3.7% of Standard Lithium 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.

Valuation and Earnings

This table compares Standard Lithium and Asahi Kasei”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Lithium	N/A	N/A	$108.82 million	$0.58	3.55
Asahi Kasei	$19.29 billion	N/A	$302.26 million	$0.70	21.36

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Standard Lithium and Asahi Kasei, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Lithium	0	0	1	0	3.00
Asahi Kasei	0	0	0	0	0.00

Standard Lithium currently has a consensus price target of $3.50, suggesting a potential upside of 69.90%. Given Standard Lithium’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Standard Lithium is more favorable than Asahi Kasei.

Dividends

Standard Lithium pays an annual dividend of $2.00 per share and has a dividend yield of 97.1%. Asahi Kasei pays an annual dividend of $0.27 per share and has a dividend yield of 1.8%. Standard Lithium pays out 344.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Asahi Kasei pays out 38.6% of its earnings in the form of a dividend.

Profitability

This table compares Standard Lithium and Asahi Kasei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Lithium	N/A	-15.67%	-14.05%
Asahi Kasei	2.47%	7.65%	3.80%

Volatility & Risk

Standard Lithium has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Asahi Kasei has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Summary

Asahi Kasei beats Standard Lithium on 8 of the 15 factors compared between the two stocks.

About Standard Lithium

Standard Lithium Ltd. explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with area of approximately 150,000 acres located in southern Arkansas. The company was formerly known as Patriot Petroleum Corp. and changed its name to Standard Lithium Ltd. in December 2016. Standard Lithium Ltd. was incorporated in 1998 and is headquartered in Vancouver, Canada.

About Asahi Kasei

Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.