PolyOne Corporation (POL) vs. DowDuPont (DWDP) Financial Analysis

PolyOne Corporation (NYSE: POL) and DowDuPont (NASDAQ:DWDP) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for PolyOne Corporation and DowDuPont, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PolyOne Corporation 0 1 3 0 2.75
DowDuPont 1 3 15 1 2.80

PolyOne Corporation presently has a consensus price target of $41.25, suggesting a potential upside of 1.05%. DowDuPont has a consensus price target of $79.06, suggesting a potential upside of 10.30%. Given DowDuPont’s stronger consensus rating and higher possible upside, analysts clearly believe DowDuPont is more favorable than PolyOne Corporation.

Earnings & Valuation

This table compares PolyOne Corporation and DowDuPont’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PolyOne Corporation $3.45 billion 0.97 $418.80 million ($0.73) -55.92
DowDuPont N/A N/A N/A N/A N/A

PolyOne Corporation has higher revenue and earnings than DowDuPont.

Dividends

PolyOne Corporation pays an annual dividend of $0.54 per share and has a dividend yield of 1.3%. DowDuPont does not pay a dividend. PolyOne Corporation pays out -74.0% of its earnings in the form of a dividend. PolyOne Corporation has raised its dividend for 5 consecutive years.

Institutional and Insider Ownership

94.0% of PolyOne Corporation shares are held by institutional investors. 1.6% of PolyOne Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares PolyOne Corporation and DowDuPont’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PolyOne Corporation -1.75% 25.84% 6.54%
DowDuPont 7.73% N/A N/A

Summary

PolyOne Corporation beats DowDuPont on 8 of the 13 factors compared between the two stocks.

About PolyOne Corporation

PolyOne Corporation (PolyOne) provides specialized polymer materials, services and solutions. The Company’s segments include Color, Additives and Inks; Specialty Engineered Materials; Performance Products and Solutions, and PolyOne Distribution. The Color, Additives and Inks segment provides custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets. The Specialty Engineered Materials segment provides specialty polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials. The Performance Products and Solutions segment consists of the Geon Performance Materials and Producer Services business units. As of December 31, 2016, the PolyOne Distribution segment distributed more than 4,000 grades of engineering and commodity grade resins.

About DowDuPont

DowDuPont Inc. is a holding company formed through the merger of equals between The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont). The Company’s business divisions include Agriculture division, Material Science division, and a Specialty Products division. The Agriculture Division offers a complete portfolio of products and technologies, and a pipeline of germplasm, traits and crop protection. The Materials Science Division provides solutions, such as packaging, transportation, infrastructure and customer care. The Specialty Products division provides solution for industrial, safety, energy, food, nutrition, construction, electronics and consumer goods industries. The company provides solutions to a range of markets, including aerospace, automotive, consumer electronics, military, printing, renewable energy, semiconductors, child nutrition, dietary supplements, carpet and apparel, fertilizer, and oil and gas/energy.

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