Tokuyama (OTCMKTS:TKYMY) vs. DuPont de Nemours (NYSE:DD) Critical Review

Tokuyama (OTCMKTS:TKYMY) and DuPont de Nemours (NYSE:DD) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Insider and Institutional Ownership

74.0% of DuPont de Nemours shares are owned by institutional investors. 0.6% of DuPont de Nemours shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Tokuyama and DuPont de Nemours, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokuyama	0	0	0	0	0.00
DuPont de Nemours	2	3	10	0	2.53

DuPont de Nemours has a consensus price target of $44.61, indicating a potential upside of 1.91%. Given DuPont de Nemours’ stronger consensus rating and higher probable upside, analysts clearly believe DuPont de Nemours is more favorable than Tokuyama.

Volatility and Risk

Tokuyama has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Dividends

Tokuyama pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. Tokuyama pays out 23.4% of its earnings in the form of a dividend. DuPont de Nemours pays out -43.5% 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokuyama	$2.25 billion	0.83	$154.35 million	$1.11	11.68
DuPont de Nemours	$12.84 billion	1.43	$703.00 million	($1.84)	-23.79

DuPont de Nemours has higher revenue and earnings than Tokuyama. DuPont de Nemours 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 Tokuyama and DuPont de Nemours’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokuyama	7.00%	9.54%	5.37%
DuPont de Nemours	-6.17%	7.81%	4.98%

Summary

DuPont de Nemours beats Tokuyama on 10 of the 16 factors compared between the two stocks.

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.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.