RPM International (NYSE:RPM – Get Free Report) and Asahi Kasei (OTCMKTS:AHKSY – Get Free Report) are both large-cap materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Dividends
RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.2%. Asahi Kasei pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. RPM International pays out 41.9% of its earnings in the form of a dividend. Asahi Kasei pays out 17.4% 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. RPM International has increased its dividend for 51 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of current recommendations for RPM International and Asahi Kasei, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RPM International | 0 | 3 | 11 | 0 | 2.79 |
| Asahi Kasei | 0 | 1 | 0 | 1 | 3.00 |
Profitability
This table compares RPM International and Asahi Kasei’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RPM International | 8.41% | 22.45% | 8.86% |
| Asahi Kasei | 6.10% | 8.58% | 4.31% |
Earnings and Valuation
This table compares RPM International and Asahi Kasei”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RPM International | $7.86 billion | 1.63 | $661.39 million | $5.16 | 19.47 |
| Asahi Kasei | $20.42 billion | 0.69 | $1.05 billion | $1.84 | 11.05 |
Asahi Kasei has higher revenue and earnings than RPM International. Asahi Kasei is trading at a lower price-to-earnings ratio than RPM International, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.9% of RPM International shares are held by institutional investors. 1.5% of RPM International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
RPM International has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Asahi Kasei has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
Summary
RPM International beats Asahi Kasei on 13 of the 18 factors compared between the two stocks.
About RPM International
RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.
About Asahi Kasei
Asahi Kasei Corporation manufactures and sells chemicals. It offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, acetonitrile, methacrylonitrile, cyclohexyl methacrylate, polyethylenes, polyethylenes powder, PMMA resin, polystyrene, polybutadiene rubbers, styrene/butadiene rubbers, clear styrenic copolymer, styrenic thermoplastic elastomer, hydrogenated styrenic elastomers, membranes and systems, functional materials, foams, purging compound, polyisocyanates, polycarbonatediol, aluminum paste, latex, photopolymers and platemaking systems, films, cyclohexanol, cyclohexane, and cyclohexene. The company also offers lithium-ion battery and lead-acid battery separators, plastic optical fibers, artificial suede, nylon 66 filament, polyamide 66, polyacetal, polyphenyene ether, polypropylene compounds, 3D cubic knitted fabric, noise suppression sheets, audio devices, photosensitive polyimide/PBO precursor, latent hardeners, glass fabrics, specialty products, explosion-bonded metal clads, lining fabrics, cupro and stretch fibers, oil-water separators, cellulose nanobeads, and flame-resistant and synthetic fiber; magnetic, current, and gas sensors; deodorizing, spunbond, cupro, multifunctional, and heat-press formable thermoplastic nonwoven; and ecorise, biocradle, and bemliese products. It provides bags and containers; cooking products; cleaners; plastic packet cutting products; cyclohexyl methacrylate, bonded anchors, and microcrystalline cellulose; pharmaceuticals and diagnostic reagents, dialyzers, therapeutic apheresis, virus removal filters, defibrillators, AEDs, automated CPRs, fluid resuscitation pumps, wearable defibrillators, temperature management systems, and data solutions; construction materials; and remodeling services, as well as develops homes and apartments. The company was founded in 1922 and is headquartered in Tokyo, Japan.
Receive News & Ratings for RPM International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RPM International and related companies with MarketBeat.com's FREE daily email newsletter.
