Nissan Chemical Industries (OTCMKTS: NNCHY) and FMC (NYSE:FMC) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Nissan Chemical Industries pays an annual dividend of $0.22 per share and has a dividend yield of 0.5%. FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Nissan Chemical Industries pays out 14.0% of its earnings in the form of a dividend. FMC pays out 16.5% 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. Nissan Chemical Industries has raised its dividend for 7 consecutive years.
This is a breakdown of recent ratings for Nissan Chemical Industries and FMC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nissan Chemical Industries||0||0||0||0||N/A|
FMC has a consensus price target of $98.22, indicating a potential upside of 19.36%. Given FMC’s higher probable upside, analysts plainly believe FMC is more favorable than Nissan Chemical Industries.
Volatility and Risk
Nissan Chemical Industries has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, FMC has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Earnings and Valuation
This table compares Nissan Chemical Industries and FMC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nissan Chemical Industries||$1.67 billion||3.77||$214.13 million||$1.57||26.51|
|FMC||$2.88 billion||3.84||$535.80 million||$3.99||20.62|
FMC has higher revenue and earnings than Nissan Chemical Industries. FMC is trading at a lower price-to-earnings ratio than Nissan Chemical Industries, indicating that it is currently the more affordable of the two stocks.
This table compares Nissan Chemical Industries and FMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nissan Chemical Industries||14.21%||16.09%||11.86%|
Insider & Institutional Ownership
90.6% of FMC shares are owned by institutional investors. 1.1% of FMC 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.
FMC beats Nissan Chemical Industries on 11 of the 16 factors compared between the two stocks.
About Nissan Chemical Industries
Nissan Chemical Industries, Ltd. engages in chemicals, performance materials, agricultural chemicals, pharmaceuticals, and advanced materials and planning businesses in Japan and internationally. Its chemical products include MELAMINE, an adhesive agent; high purity chemicals; AdBlue, a urea solution; FINEOXOCOL, a saturated fatty alcohol and acid; ammonia, and sulfuric and nitric acid; concrete and civil engineering products; TEPIC, an epoxy compound; Melamine Cyanurate, a nitrogen compound; PHOSMEL, a salt of melamine, polymerized melamine, and polyphosphoric acid; and HI-LITE, a chlorinated isocyanulate. The company offers performance materials comprising display, semiconductor, and inorganic materials. It also offers agricultural chemicals, such as herbicides; an acaricide with active ingredients Cyenopyrafen and Amisulbrom as components; insecticides; GREATAM and PULSOR for sheath blight disease in rice fields; IKARUGA for large patch disease in grass lawns; BESGREEN for pythium diseases in grass lawns; INPOOL for cyperaceae weeds and broadleaf weeds in grass lawns; and veterinary pharmaceuticals. In addition, the company provides pharmaceutical products, such as LIVALO, a statin agent, as well as LANDEL and FINTE that block calcium channels; and custom manufacturing and process researching services for pharmaceutical ingredients. Further, the company provides advanced materials comprising HYPERTECH, a functional coating; ECOPROMOTE, an environmental harmony material; NANOFIBERGEL, a life science material; SUNCONNECT, an optical material; and OPTBEADS, a spherical fine particle. Furthermore, it engages in the landscaping and civil engineering, plant engineering, environmental analysis, electronic materials, and transportation businesses. The company was formerly known as Dainippon Jinzo Hiryo and changed its name to Nissan Chemical Industries, Ltd. in 1937. Nissan Chemical Industries, Ltd. was founded in 1887 and is headquartered in Tokyo, Japan.
FMC Corporation is a diversified chemical company serving agricultural, consumer and industrial markets. The Company operates in three business segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. As of December 31, 2016, the FMC Agricultural Solutions segment developed, marketed and sold three classes of crop protection chemicals: insecticides, herbicides and fungicides. The Company’s FMC Agricultural Solutions segment operates in the agrochemicals industry. This segment develops, manufactures and sells a portfolio of professional pest control, and lawn and garden products. The FMC Health and Nutrition segment focuses on nutritional ingredients, health excipients and functional health ingredients. The Company’s FMC Health and Nutrition segment focuses on food ingredients, pharmaceutical excipients and omega-3 oils. The Company’s FMC Lithium segment manufactures lithium for use in a range of lithium products.
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