Head to Head Analysis: Mativ (NYSE:MATV) & Nissan Chemical (OTCMKTS:NNCHY)

Nissan Chemical (OTCMKTS:NNCHY) and Mativ (NYSE:MATV) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Nissan Chemical and Mativ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nissan Chemical	$1.65 billion	3.12	$284.08 million	$2.29	16.66
Mativ	$1.99 billion	0.23	-$337.40 million	($6.26)	-1.36

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Nissan Chemical and Mativ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nissan Chemical	0	1	0	0	2.00
Mativ	1	1	0	0	1.50

Volatility and Risk

Nissan Chemical has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500. Comparatively, Mativ has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

95.0% of Mativ shares are owned by institutional investors. 1.8% of Mativ shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Nissan Chemical pays an annual dividend of $0.57 per share and has a dividend yield of 1.5%. Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Nissan Chemical pays out 24.9% of its earnings in the form of a dividend. Mativ pays out -6.4% 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. Mativ has raised its dividend for 1 consecutive years. Mativ is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Nissan Chemical and Mativ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nissan Chemical	17.07%	19.08%	13.77%
Mativ	-16.98%	9.79%	2.08%

Summary

Nissan Chemical beats Mativ on 8 of the 15 factors compared between the two stocks.

About Nissan Chemical

Nissan Chemical Corporation engages in the chemicals, performance materials, agricultural chemicals, and pharmaceuticals businesses in Japan and internationally. The company provides high purity chemicals; AdBlue, an urea solution; ammonia, sulfuric, and nitric acid, as well as concrete and civil engineering-related products; TEPIC, an epoxy compound; Melamine Cyanurate, a salt of melamine and iso cyanuric acid; TEPIC-VL, a liquid epoxy compound; TEPIC-FL, a liquid epoxy material; FOLDI-E101, an epoxy reactive diluent; Ecopromote, a nucleating agents for PLA; Nissan Reishi, a health food; phenylphosphonic acid; HI-LITE, a chlorinated isocyanulate; OPTBEADS, a melamine-formaldehyde resin and silica; and FINEOXOCOL, a saturated fatty alcohol and acid. It also offers performance materials comprising display, semiconductor, and inorganic materials; agricultural chemicals, such as herbicides, insecticides, fungicides, etc. for use on agricultural land, as well as in golf courses and parks; and drug substances for antiparasite drugs for animals. In addition, the company provides pharmaceutical products, such as LIVALO, a antihypercholesterolemic agent; LANDEL and FINTE, a long-acting calcium channel blocker; APIs and intermediaries; and manufacturing and process researching services for pharmaceutical ingredients. Further, it develops healthcare, information and communication materials, and environmental and energy materials. The company was formerly known as Nissan Chemical Industries, Ltd. and changed its name to Nissan Chemical Corporation in July 2018. Nissan Chemical Corporation was founded in 1887 and is headquartered in Tokyo, Japan.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.