Ashland Global (NYSE: ASH) and Eastman Chemical (NYSE:EMN) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Volatility & Risk
Ashland Global has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Eastman Chemical has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Valuation & Earnings
This table compares Ashland Global and Eastman Chemical’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ashland Global||$3.26 billion||1.39||$1.00 million||($0.06)||-1,213.17|
|Eastman Chemical||$9.55 billion||1.59||$1.38 billion||$10.12||10.53|
Eastman Chemical has higher revenue and earnings than Ashland Global. Ashland Global is trading at a lower price-to-earnings ratio than Eastman Chemical, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.6% of Ashland Global shares are owned by institutional investors. Comparatively, 85.4% of Eastman Chemical shares are owned by institutional investors. 1.1% of Ashland Global shares are owned by insiders. Comparatively, 1.1% of Eastman Chemical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings for Ashland Global and Eastman Chemical, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ashland Global currently has a consensus target price of $85.17, indicating a potential upside of 17.00%. Eastman Chemical has a consensus target price of $102.08, indicating a potential downside of 4.18%. Given Ashland Global’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ashland Global is more favorable than Eastman Chemical.
This table compares Ashland Global and Eastman Chemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ashland Global pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. Eastman Chemical pays an annual dividend of $2.24 per share and has a dividend yield of 2.1%. Ashland Global pays out -1,500.0% of its earnings in the form of a dividend. Eastman Chemical pays out 22.1% 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. Ashland Global has raised its dividend for 6 consecutive years.
Eastman Chemical beats Ashland Global on 10 of the 16 factors compared between the two stocks.
Ashland Global Company Profile
Ashland Inc. is engaged in specialty chemicals, and through Valvoline, is a consumer-branded lubricant supplier. The Company operates in three segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. Its Specialty Ingredients segment is engaged in providing cellulose ethers, vinyl pyrrolidones and biofunctionals, and consists of two divisions: Consumer Specialties and Industrial Specialties. Its Performance Materials segment is engaged in providing unsaturated polyester resins and vinyl ester resins, and consists of two divisions: Composites and Intermediates/Solvents. Its Valvoline segment is engaged in producing and distributing automotive, commercial and industrial lubricants, and automotive chemicals. Its chemistry is used in various markets and applications, including architectural coatings, adhesives, automotive, construction, energy and pharmaceutical.
Eastman Chemical Company Profile
Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.
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