Reviewing ASAHI KASEI Cor/ADR (AHKSY) and Koninklijke DSM (RDSMY)

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ASAHI KASEI Cor/ADR (OTCMKTS: RDSMY) and Koninklijke DSM (OTCMKTS:RDSMY) are both large-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for ASAHI KASEI Cor/ADR and Koninklijke DSM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASAHI KASEI Cor/ADR 0 0 0 0 N/A
Koninklijke DSM 0 0 1 0 3.00

Dividends

ASAHI KASEI Cor/ADR pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Koninklijke DSM pays an annual dividend of $0.38 per share and has a dividend yield of 1.5%. ASAHI KASEI Cor/ADR pays out 20.5% of its earnings in the form of a dividend. Koninklijke DSM pays out 34.2% 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. ASAHI KASEI Cor/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.1% of ASAHI KASEI Cor/ADR shares are owned by institutional investors. Comparatively, 0.1% of Koninklijke DSM shares are owned by institutional investors. 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.

Earnings & Valuation

This table compares ASAHI KASEI Cor/ADR and Koninklijke DSM’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASAHI KASEI Cor/ADR $18.44 billion 1.08 $1.53 billion $2.24 12.67
Koninklijke DSM $9.75 billion 1.92 $2.00 billion $1.11 23.22

Koninklijke DSM has lower revenue, but higher earnings than ASAHI KASEI Cor/ADR. ASAHI KASEI Cor/ADR is trading at a lower price-to-earnings ratio than Koninklijke DSM, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ASAHI KASEI Cor/ADR and Koninklijke DSM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASAHI KASEI Cor/ADR 8.29% 13.14% 7.13%
Koninklijke DSM 22.77% 14.36% 7.75%

Volatility & Risk

ASAHI KASEI Cor/ADR has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Koninklijke DSM has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Koninklijke DSM beats ASAHI KASEI Cor/ADR on 8 of the 13 factors compared between the two stocks.

About ASAHI KASEI Cor/ADR

Asahi Kasei Corporation primarily manufactures, processes, and sells chemical products in Japan and internationally. The company offers caustic soda, chemical fertilizers, nitric acid, ammonia, acrylonitrile, methyl methacrylate, styrene, adipic acid, hexamethylene diamine, AH salt, propionitrile, sodium cyanide, methacrylonitrile, cyclohexyl methacrylate, cyclohexanol, cyclohexane, and cyclohexene; polymers and sheets; chemical intermediates; additives; membranes and systems; clads and anchors; optical and printing materials; electronic materials; polymers; synthetic rubber and elastomers; consumables; cleaners; and packaging products. It is also involved in the construction of homes and apartments; management of rental units and condominiums; brokerage of used homes; remodeling; and mortgage financing. In addition, the company provides prescription drugs and diagnostic reagents; dialyzers, therapeutic apheresis and CRRTs, leukocyte reduction filters, and virus removal filters; defibrillators, AEDs, automated CPRs, fluid resuscitation pump, temperature management products, and data solutions, as well as lithium-ion battery and lead-acid battery separators, and electronic devices. Further, it offers cupro fiber, lining fabric, stretch fiber, spunbond nonwoven, cupro nonwoven fabric, microfiber suede, oil-water separator, deodorizing nonwoven, heat-press formable thermoplastic nonwoven, noise suppression sheet, filament, flame-resistant fiber, honeycomb fabric, cellulose nanobead, and elastic electric wire products. Additionally, the company provides aerated concrete products, foundation systems, insulation materials, and structural components; and engineering and employment agency services, as well as speech recognition middleware and UVC LED products. Asahi Kasei Corporation was founded in 1922 and is headquartered in Tokyo, Japan.

About Koninklijke DSM

Koninklijke DSM N.V., a science-based company, engages in health, nutrition, and materials businesses worldwide. The company operates through three segments: Nutrition, Materials, and Innovation Center. The Nutrition segment offers nutrients, such as vitamins, carotenoids, nutritional lipids, and other ingredients to feed, food, pharmaceutical, and personal care industries; and food enzymes, cultures, yeast extracts, savory flavors, hydrocolloids, and other specialty ingredients for use in dairy, baking, beverage, and savory applications. The Materials segment provides Dyneema, a fiber solution serving textiles, commercial marine, and sports segments; high-performance plastics primarily for use in automotive and electronics markets, as well as offers solutions to specialized industries, including water management, breathable textiles, and flexible food packaging; and resins solutions for paints and coatings, fiber optic coatings, and 3D printing applications. The Innovation Center segment offers cellulosic bio-ethanol and bio-based succinic acids; anti-reflective coatings for solar glass; and anti-soiling coatings for use in cleaning and maintaining solar farms in desert-like conditions. This segment also produces biomedical materials and technologies that enable medical device manufacturers to enhance care across various medical specialties. Koninklijke DSM N.V. was founded in 1902 and is headquartered in Heerlen, the Netherlands.

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