Avient (NYSE:AVNT) vs. Tokuyama (OTCMKTS:TKYMY) Head-To-Head Comparison

Avient (NYSE:AVNT) and Tokuyama (OTCMKTS:TKYMY) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Avient and Tokuyama”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avient	$3.26 billion	1.20	$81.90 million	$0.89	47.80
Tokuyama	$2.25 billion	0.83	$154.35 million	$1.17	11.09

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

Profitability

This table compares Avient and Tokuyama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avient	2.51%	10.95%	4.31%
Tokuyama	7.42%	9.05%	5.00%

Dividends

Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Tokuyama pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Avient pays out 123.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tokuyama pays out 22.2% of its earnings in the form of a dividend. Avient has increased its dividend for 1 consecutive years. Avient is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for Avient and Tokuyama, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avient	0	4	3	0	2.43
Tokuyama	0	0	0	0	0.00

Avient currently has a consensus price target of $47.00, suggesting a potential upside of 10.47%. Given Avient’s stronger consensus rating and higher probable upside, research analysts clearly believe Avient is more favorable than Tokuyama.

Volatility and Risk

Avient has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Tokuyama has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Avient shares are owned by institutional investors. 0.9% of Avient shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Avient beats Tokuyama on 12 of the 17 factors compared between the two stocks.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.