Comparing PPG Industries (NYSE:PPG) and Synthomer (OTCMKTS:SYHMY)

Synthomer (OTCMKTS:SYHMY) and PPG Industries (NYSE:PPG) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Synthomer and PPG Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synthomer	N/A	N/A	N/A	$0.54	2.80
PPG Industries	$15.88 billion	1.58	$1.58 billion	$6.98	16.12

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

Analyst Recommendations

This is a summary of current ratings for Synthomer and PPG Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synthomer	0	0	0	0	0.00
PPG Industries	0	10	7	0	2.41

PPG Industries has a consensus target price of $126.00, suggesting a potential upside of 11.97%. Given PPG Industries’ stronger consensus rating and higher possible upside, analysts plainly believe PPG Industries is more favorable than Synthomer.

Institutional & Insider Ownership

81.9% of PPG Industries shares are held by institutional investors. 0.3% of PPG Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Synthomer and PPG Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synthomer	N/A	N/A	N/A
PPG Industries	9.57%	21.07%	7.80%

Summary

PPG Industries beats Synthomer on 11 of the 11 factors compared between the two stocks.

About Synthomer

Synthomer plc operates as a specialty chemicals company in the United Kingdom and internationally. It operates through five segments: Performance Elastomers, Functional Solutions, Industrial Specialities, Acrylate Monomers, and Adhesive Technologies. The company offers adhesives, including PSA labels, packaging and specialty tapes, saturants, release coatings, wood working, wet glues, hygiene and contact adhesives, packaging and assembly hot melt adhesives; coatings products such as architectural, masonry, intumescent, metal, wood, soil releases, blinders, ink receptive, polyester for powder coatings, SYNTHOMER NX for coalescing agents, and SYNOLOX BEPF for glycol. It also provides construction services comprising mortar modification, waterproofing, construction adhesives, additives for construction, asphalt and road, wire and cable, cement adhesives, assembly, HMA, glass EIFS, polyester PES roofing, decorative laminates, flooring adhesives, and technical fibre; health and protection offers medical and examination gloves, fabric-supported gloves, medical devices, personal care and food additives, hygiene adhesives, non-wovens, footwear, hygiene and wipes, and coated fabric. In addition, it provides performance materials; paper, carpet, and foam products, and energy solutions such as well cementing additives, drilling fluid additives, and battery binders. The company was formerly known as Yule Catto & Co. plc and changed its name to Synthomer plc in 2012. Synthomer plc was founded in 1863 and is headquartered in London, the United Kingdom.

About PPG Industries

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.