Analyzing Chemours (CC) & ASAHI KASEI Cor/ADR (AHKSY)

Chemours (NYSE:CC) and ASAHI KASEI Cor/ADR (OTCMKTS:AHKSY) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Chemours and ASAHI KASEI Cor/ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemours $6.18 billion 1.03 $746.00 million $3.82 9.39
ASAHI KASEI Cor/ADR $18.44 billion 0.99 $1.53 billion $2.24 11.60

ASAHI KASEI Cor/ADR has higher revenue and earnings than Chemours. Chemours is trading at a lower price-to-earnings ratio than ASAHI KASEI Cor/ADR, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Chemours has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500. Comparatively, ASAHI KASEI Cor/ADR has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Dividends

Chemours pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. ASAHI KASEI Cor/ADR pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Chemours pays out 26.2% of its earnings in the form of a dividend. ASAHI KASEI Cor/ADR pays out 12.1% 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.

Profitability

This table compares Chemours and ASAHI KASEI Cor/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemours 15.11% 107.22% 13.56%
ASAHI KASEI Cor/ADR 8.43% 13.26% 7.30%

Analyst Ratings

This is a summary of current ratings and target prices for Chemours and ASAHI KASEI Cor/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemours 0 4 6 0 2.60
ASAHI KASEI Cor/ADR 0 0 0 0 N/A

Chemours currently has a consensus price target of $56.89, indicating a potential upside of 58.60%. Given Chemours’ higher probable upside, analysts plainly believe Chemours is more favorable than ASAHI KASEI Cor/ADR.

Insider and Institutional Ownership

76.7% of Chemours shares are owned by institutional investors. Comparatively, 0.1% of ASAHI KASEI Cor/ADR shares are owned by institutional investors. 1.8% of 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.

Summary

Chemours beats ASAHI KASEI Cor/ADR on 11 of the 15 factors compared between the two stocks.

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.

ASAHI KASEI Cor/ADR Company Profile

Asahi Kasei Corporation primarily manufactures, processes, and sells chemical products in Japan and internationally. The company offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, methacrylonitrile, cyclohexyl methacrylate, cyclohexanol, cyclohexane, and cyclohexene; polymers and sheets; chemical intermediates; additives; membranes and systems; clads and anchors; optical and printing materials; electronic materials; polymers; synthetic rubber and elastomers; consumables; cleaners; and packaging products. It is also involved in the construction of homes and apartments; management of rental units and condominiums; brokerage of used homes; remodeling; and mortgage financing. In addition, the company provides prescription drugs and diagnostic reagents; dialyzers, therapeutic apheresis and CRRTs, leukocyte reduction filters, and virus removal filters; defibrillators, AEDs, automated CPRs, fluid resuscitation pump, temperature management products, and data solutions, as well as lithium-ion battery and lead-acid battery separators, and electronic devices. Further, it offers cupro fiber, lining fabric, stretch fiber, spunbond nonwoven, cupro nonwoven fabric, microfiber suede, oil-water separator, deodorizing nonwoven, heat-press formable thermoplastic nonwoven, noise suppression sheet, filament, flame-resistant fiber, honeycomb fabric, cellulose nanobead, and elastic electric wire products. Additionally, the company provides aerated concrete products, foundation systems, insulation materials, and structural components; and engineering and employment agency services, as well as speech recognition middleware and UVC LED products. Asahi Kasei Corporation was founded in 1922 and is headquartered in Tokyo, Japan.

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