Reviewing Dow Chemical (DWDP) and The Competition

Dow Chemical (NYSE: DWDP) is one of 14 public companies in the “Plastics materials & resins” industry, but how does it weigh in compared to its peers? We will compare Dow Chemical to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.

Profitability

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This table compares Dow Chemical and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dow Chemical 2.34% 8.21% 3.92%
Dow Chemical Competitors 6.60% 23.59% 8.10%

Insider and Institutional Ownership

70.5% of Dow Chemical shares are held by institutional investors. Comparatively, 80.9% of shares of all “Plastics materials & resins” companies are held by institutional investors. 0.4% of Dow Chemical shares are held by insiders. Comparatively, 1.6% of shares of all “Plastics materials & resins” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Dow Chemical and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dow Chemical $62.48 billion $1.46 billion 19.85
Dow Chemical Competitors $9.05 billion $413.23 million 17.57

Dow Chemical has higher revenue and earnings than its peers. Dow Chemical is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Dow Chemical has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Dow Chemical’s peers have a beta of -2.66, suggesting that their average stock price is 366% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Dow Chemical and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dow Chemical 0 4 21 0 2.84
Dow Chemical Competitors 42 360 666 22 2.61

Dow Chemical presently has a consensus target price of $81.00, indicating a potential upside of 20.00%. As a group, “Plastics materials & resins” companies have a potential upside of 11.50%. Given Dow Chemical’s stronger consensus rating and higher probable upside, research analysts clearly believe Dow Chemical is more favorable than its peers.

Dividends

Dow Chemical pays an annual dividend of $1.52 per share and has a dividend yield of 2.3%. Dow Chemical pays out 44.7% of its earnings in the form of a dividend. As a group, “Plastics materials & resins” companies pay a dividend yield of 2.1% and pay out 30.6% of their earnings in the form of a dividend.

Summary

Dow Chemical beats its peers on 8 of the 15 factors compared.

About Dow Chemical

DowDuPont Inc., through its subsidiaries, engages in agriculture, materials science, and specialty products businesses worldwide. The company's Agriculture segment develops and sells hybrid corn seed and soybean seed varieties; canola, cotton, sunflower, sorghum, wheat, and rice seeds; silage inoculants; and weed control, disease control, and insect control products. Its Performance Materials & Coatings segment manufactures and sells architectural paints and coatings, and industrial coatings; performance monomers and silicones; and standalone silicone and acrylic-based materials. The company's Industrial Intermediates & Infrastructure segment offers cellulose ethers, redispersible latex powders, silicones, and acrylic emulsions; energy solutions; propylene oxide and propylene glycol, polyether polyols and aromatic isocyanates, and formulated polyurethane systems; and caustic soda, and ethylene dichloride and vinyl chloride monomer products. Its Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatic products; and polyolefin elastomers and ethylene propylene diene monomer elastomers. The company's Electronics & Imaging segment offers materials and systems for mobile devices, television monitors, personal computers, and electronics. Its Nutrition & Biosciences segment provides specialty food ingredients, as well as cellulosic- and alginates-based pharma excipients; and enzymes, biomaterials, biocides, and antimicrobial solutions and process technology. The company's Transportation & Advanced Polymers segment offers engineering resins, adhesives, lubricants, and parts for transportation, electronics, medical, industrial, and consumer end-markets. Its Safety & Construction segment provides engineered products and integrated systems for construction, worker safety, energy, oil and gas, transportation, medical device, and water purification and separation industries. The company was founded in 1897 and is headquartered in Midland, Michigan.

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