The Chemours (NYSE: CC) and DSM (OTCMKTS:RDSMY) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Valuation and Earnings
This table compares The Chemours and DSM’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Chemours||$6.18 billion||1.43||$746.00 million||$3.82||13.02|
|DSM||$9.75 billion||1.96||$2.00 billion||$1.11||23.70|
Risk and Volatility
The Chemours has a beta of 2.92, indicating that its stock price is 192% more volatile than the S&P 500. Comparatively, DSM has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
The Chemours pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. DSM pays an annual dividend of $0.59 per share and has a dividend yield of 2.2%. The Chemours pays out 17.8% of its earnings in the form of a dividend. DSM pays out 53.2% 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.
This is a breakdown of recent ratings for The Chemours and DSM, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
The Chemours presently has a consensus target price of $60.94, suggesting a potential upside of 22.53%. Given The Chemours’ higher possible upside, research analysts plainly believe The Chemours is more favorable than DSM.
Institutional and Insider Ownership
77.5% of The Chemours shares are owned by institutional investors. Comparatively, 0.1% of DSM shares are owned by institutional investors. 1.8% of The Chemours shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares The Chemours and DSM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
The Chemours beats DSM on 9 of the 16 factors compared between the two stocks.
The Chemours Company Profile
The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Fluoroproducts, and Chemical Solutions. The Titanium Technologies segment manufactures and sells titanium dioxide under the Ti-Pure and BaiMax brands for various applications in architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride window profiles, laminate papers used for furniture and building materials, and coated papers and paperboards used for packaging. The Fluoroproducts segment provides fluoroproducts, including refrigerants, and industrial fluoropolymer resins and derivatives under the Teflon, Viton, Krytox, and Nafion brand names. The Chemical Solutions segment offers industrial and specialty chemicals for gold production, oil and gas, water treatment, electronics, and automotive industries. It also provides sodium cyanide through its mining solutions business; and performance chemicals and intermediates, such as methylamines, glycolic acid, and Vazo free radical initiators. The Chemours Company was founded in 2014 and is headquartered in Wilmington, Delaware.
DSM Company Profile
Koninklijke DSM N.V., a science-based company, engages in health, nutrition, and materials businesses worldwide. The company operates through three segments: Nutrition, Materials, and Innovation Center. The Nutrition segment offers nutrients, such as vitamins, carotenoids, nutritional lipids, and other ingredients to feed, food, pharmaceutical, and personal care industries; and food enzymes, cultures, yeast extracts, savory flavors, hydrocolloids, and other specialty ingredients for use in dairy, baking, beverage, and savory applications. The Materials segment provides Dyneema, a fiber solution serving textiles, commercial marine, and sports segments; high-performance plastics primarily for use in automotive and electronics markets, as well as offers solutions to specialized industries, including water management, breathable textiles, and flexible food packaging; and resins solutions for paints and coatings, fiber optic coatings, and 3D printing applications. The Innovation Center segment offers cellulosic bio-ethanol and bio-based succinic acids; anti-reflective coatings for solar glass; and anti-soiling coatings for use in cleaning and maintaining solar farms in desert-like conditions. This segment also produces biomedical materials and technologies that enable medical device manufacturers to enhance care across various medical specialties. Koninklijke DSM N.V. was founded in 1902 and is headquartered in Heerlen, the Netherlands.
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