Head-To-Head Survey: Eastman Chemical (NYSE:EMN) vs. Tokuyama (OTCMKTS:TKYMY)

Eastman Chemical (NYSE:EMN) and Tokuyama (OTCMKTS:TKYMY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

83.7% of Eastman Chemical shares are owned by institutional investors. 1.9% of Eastman Chemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Eastman Chemical pays an annual dividend of $3.36 per share and has a dividend yield of 5.5%. Tokuyama pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Eastman Chemical pays out 56.1% of its earnings in the form of a dividend. Tokuyama pays out 10.8% 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. Eastman Chemical has raised its dividend for 15 consecutive years. Eastman Chemical is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Eastman Chemical and Tokuyama, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Chemical	0	6	8	0	2.57
Tokuyama	0	0	0	0	0.00

Eastman Chemical presently has a consensus target price of $78.62, suggesting a potential upside of 27.84%. Given Eastman Chemical’s stronger consensus rating and higher possible upside, equities analysts clearly believe Eastman Chemical is more favorable than Tokuyama.

Valuation and Earnings

This table compares Eastman Chemical and Tokuyama”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Chemical	$9.02 billion	0.78	$905.00 million	$5.99	10.27
Tokuyama	$2.25 billion	0.83	$154.35 million	$1.11	11.68

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

Profitability

This table compares Eastman Chemical and Tokuyama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastman Chemical	7.75%	12.89%	5.03%
Tokuyama	7.00%	9.54%	5.37%

Risk & Volatility

Eastman Chemical has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Tokuyama has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Summary

Eastman Chemical beats Tokuyama on 13 of the 17 factors compared between the two stocks.

About Eastman Chemical

Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, cellulose esters, polyvinyl butyral sheets, and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. The company was founded in 1920 and is headquartered in Kingsport, Tennessee.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.