Dow Chemical Company (The) (NYSE: DWDP) and PolyOne Corporation (NYSE:POL) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
This table compares Dow Chemical Company (The) and PolyOne Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dow Chemical Company (The)||5.01%||9.73%||4.18%|
Dow Chemical Company (The) pays an annual dividend of $1.52 per share and has a dividend yield of 2.2%. PolyOne Corporation pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. PolyOne Corporation pays out 25.8% of its earnings in the form of a dividend. PolyOne Corporation has increased its dividend for 5 consecutive years.
This is a breakdown of recent ratings and recommmendations for Dow Chemical Company (The) and PolyOne Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dow Chemical Company (The)||1||3||16||0||2.75|
Dow Chemical Company (The) presently has a consensus target price of $79.41, indicating a potential upside of 12.48%. PolyOne Corporation has a consensus target price of $43.17, indicating a potential downside of 4.37%. Given Dow Chemical Company (The)’s higher probable upside, research analysts plainly believe Dow Chemical Company (The) is more favorable than PolyOne Corporation.
Earnings and Valuation
This table compares Dow Chemical Company (The) and PolyOne Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Dow Chemical Company (The)||$48.16 billion||3.43||$4.32 billion||N/A||N/A|
|PolyOne Corporation||$3.34 billion||1.09||$165.20 million||$2.09||21.60|
Dow Chemical Company (The) has higher revenue and earnings than PolyOne Corporation.
Institutional & Insider Ownership
74.8% of Dow Chemical Company (The) shares are owned by institutional investors. Comparatively, 96.4% of PolyOne Corporation shares are owned by institutional investors. 0.9% of Dow Chemical Company (The) shares are owned by company insiders. Comparatively, 1.6% of PolyOne Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dow Chemical Company (The) beats PolyOne Corporation on 8 of the 15 factors compared between the two stocks.
About Dow Chemical Company (The)
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, 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.
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.
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