SHOWA DENKO KK/ADR (OTCMKTS:SHWDY) & PQ Group (OTCMKTS:PQG) Financial Review

SHOWA DENKO KK/ADR (OTCMKTS:SHWDY) and PQ Group (NYSE:PQG) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Earnings & Valuation

This table compares SHOWA DENKO KK/ADR and PQ Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SHOWA DENKO KK/ADR $8.99 billion 4.26 $1.00 billion $8.92 2.87
PQ Group $1.61 billion 1.37 $58.30 million $0.87 18.51

SHOWA DENKO KK/ADR has higher revenue and earnings than PQ Group. SHOWA DENKO KK/ADR is trading at a lower price-to-earnings ratio than PQ Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

SHOWA DENKO KK/ADR has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, PQ Group has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for SHOWA DENKO KK/ADR and PQ Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SHOWA DENKO KK/ADR 0 0 0 0 N/A
PQ Group 1 0 3 0 2.50

PQ Group has a consensus target price of $17.50, suggesting a potential upside of 8.70%. Given PQ Group’s higher possible upside, analysts clearly believe PQ Group is more favorable than SHOWA DENKO KK/ADR.

Profitability

This table compares SHOWA DENKO KK/ADR and PQ Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SHOWA DENKO KK/ADR N/A N/A N/A
PQ Group 5.56% 7.68% 2.98%

Institutional and Insider Ownership

68.7% of PQ Group shares are held by institutional investors. 2.6% of PQ Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

PQ Group beats SHOWA DENKO KK/ADR on 8 of the 13 factors compared between the two stocks.

About SHOWA DENKO KK/ADR

Showa Denko K.K. operates as a chemical company in Japan and internationally. It operates in six segments: Petrochemicals, Chemicals, Electronics, Inorganics, Aluminum, and Others. The Petrochemicals segment offers olefins, including ethylene, propylene, C4 fraction, cracked fuel oils, etc.; and organic chemicals, including vinyl acetate monomer, vinyl and ethyl acetate, allyl alcohol, acetaldehyde, acetic acid, and allyl ester resins, as well as polypropylene. The Chemicals segment provides functional chemicals, such as polymer emulsion and unsaturated polyester resins; industrial gases comprising liquefied carbon dioxide, dry ice, oxygen, nitrogen, hydrogen, argon, fusing ethylene, and helium; basic chemicals that include liquefied ammonia, acrylonitrile, and chloroprene rubber; and electronic chemicals, which comprise high-purity gases for electronics. The Electronics segment offers aluminum based and glass based hard disks (HDs); aluminum substrates for HDs; LED chips, epitaxial wafers, rare earth magnetic alloys, and lithium-ion battery materials; MOCVD epitaxial wafers; and advanced battery materials. The Inorganics segment provides alumina electrical fillers fused materials, abrasive grains lapping and polishing materials, plasma spraying materials, refractories, alumina for heat-radiation fillers, spherical alumina, hexagonal boron nitride, lubrication and mold-release agents, and polishing materials; and graphite electrodes. The Aluminum segment offers aluminum capacitor foils and aluminum sheets; extruded and forged products, aluminum cylinders, cast rods of aluminum alloys, compressors, heat exchangers, and power semiconductor cooling devices; and aluminum beverage cans. The Others segment engages in the general trading and building materials business; and sells chemicals, resins, metals, and electronic materials. The company was founded in 1908 and is headquartered in Tokyo, Japan.

About PQ Group

PQ Group Holdings Inc. provides catalysts, specialty materials and chemicals, and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates in two segments, Environmental Catalysts and Services; and Performance Materials and Chemicals. It primarily offers refinery catalysts, emissions control catalysts, and catalyst recycling services for fuels and emission controls use; silica gels for edible oil and beer clarification; precipitated silicas and zeolites for the surface coating, dentifrice, and dishwasher and laundry detergent applications; reflective markings for roadways and airports; and hollow glass beads or microspheres for cement additive, metal finishing, and oil well cement uses. The company also provides catalysts for high-density polyethylene and chemicals syntheses; silicate for catalyst manufacturing; antiblocks for film packaging; solid and hollow microspheres for composite plastics; silicate precursors for the tire industry; silicate for water treatment and drilling muds; sulfur derivatives for copper mining; and bleaching aids for paper. PQ Group Holdings Inc. was incorporated in 2015 and is headquartered in Malvern, Pennsylvania.

Receive News & Ratings for SHOWA DENKO KK/ADR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SHOWA DENKO KK/ADR and related companies with MarketBeat.com's FREE daily email newsletter.