Asahi Kasei (OTCMKTS:AHKSY) versus Valhi (NYSE:VHI) Head to Head Comparison

Asahi Kasei (OTCMKTS:AHKSY) and Valhi (NYSE:VHI) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Asahi Kasei and Valhi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Kasei	0	2	0	0	2.00
Valhi	1	0	0	0	1.00

Volatility and Risk

Asahi Kasei has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Valhi has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Dividends

Asahi Kasei pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Valhi pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Asahi Kasei pays out 17.4% of its earnings in the form of a dividend. Valhi pays out 640.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Asahi Kasei	5.94%	9.22%	4.66%
Valhi	0.06%	0.09%	0.05%

Insider and Institutional Ownership

3.8% of Valhi shares are owned by institutional investors. 0.2% of Valhi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asahi Kasei	$20.42 billion	0.67	$1.05 billion	$1.84	10.71
Valhi	$2.08 billion	0.22	-$57.60 million	$0.05	324.54

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

Summary

Asahi Kasei beats Valhi on 9 of the 14 factors compared between the two stocks.

About Asahi Kasei

Asahi Kasei Corporation is a Japanese diversified company with businesses spanning materials, homes and healthcare. Founded in 1922, it has expanded from its origins in chemical manufacturing into a range of industrial and consumer markets. Its materials business produces chemicals, polymers, fibers, electronic materials and components, including battery-separator materials. The homes business supplies construction materials and develops and builds housing, including its Hebel Haus homes in Japan.

About Valhi

Valhi, Inc. is a holding company whose businesses operate through subsidiaries in chemicals, component products, waste management and real estate. Its chemical operations include an interest in Kronos Worldwide, a producer and marketer of titanium dioxide pigments used to add whiteness, brightness and opacity to products such as paints, plastics and paper. Through CompX International, Valhi is also involved in manufacturing security products and marine components. Its waste-management subsidiary, Waste Control Specialists, provides disposal and related services for certain low-level radioactive, hazardous and industrial wastes at its facility in Andrews County, Texas.