Stepan (NYSE:SCL) and Akzo Nobel (OTCMKTS:AKZOF) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Stepan pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Akzo Nobel does not pay a dividend. Stepan pays out 20.5% of its earnings in the form of a dividend. Stepan has increased its dividend for 51 consecutive years.
Institutional & Insider Ownership
72.3% of Stepan shares are held by institutional investors. 11.4% of Stepan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Stepan and Akzo Nobel’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stepan||$1.99 billion||1.02||$112.76 million||$4.88||18.37|
Stepan has higher revenue and earnings than Akzo Nobel.
This table compares Stepan and Akzo Nobel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Stepan and Akzo Nobel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stepan presently has a consensus price target of $72.00, suggesting a potential downside of 19.68%. Given Stepan’s higher possible upside, equities analysts plainly believe Stepan is more favorable than Akzo Nobel.
Stepan beats Akzo Nobel on 10 of the 11 factors compared between the two stocks.
Stepan Company Profile
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in North America, Europe, Latin America, and Asia. The company operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used as principal ingredients in consumer and industrial cleaning products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, and lubricating ingredients. Its surfactants are also used in various applications, such as emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered resins, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials and components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in the food, flavoring, nutritional supplement, and pharmaceutical applications. The company was founded in 1932 and is headquartered in Northfield, Illinois.
Akzo Nobel Company Profile
Akzo Nobel N.V. operates as a paints and coatings company worldwide. The company offers decorative paints, including paints, lacquers, and varnishes; a range of mixing machines and color concepts for the building and renovation industry; and specialty coatings for metal, wood, and other building materials primarily under the Dulux, Coral, Levis, and Flexa brands. It also provides performance coatings to protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.
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