Critical Comparison: Standard Lithium (NYSE:SLI) & Kuraray (OTCMKTS:KURRY)

Standard Lithium (NYSE:SLI) and Kuraray (OTCMKTS:KURRY) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Standard Lithium has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Kuraray has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Dividends

Standard Lithium pays an annual dividend of $2.00 per share and has a dividend yield of 153.8%. Kuraray pays an annual dividend of $0.38 per share and has a dividend yield of 1.0%. Standard Lithium pays out 339.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kuraray pays out 19.7% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Standard Lithium and Kuraray”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Lithium	N/A	N/A	$108.82 million	$0.59	2.20
Kuraray	$5.47 billion	0.79	$209.82 million	$1.93	20.62

Kuraray has higher revenue and earnings than Standard Lithium. Standard Lithium is trading at a lower price-to-earnings ratio than Kuraray, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Standard Lithium and Kuraray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Lithium	N/A	-11.52%	-10.25%
Kuraray	3.90%	7.73%	4.68%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Standard Lithium and Kuraray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Lithium	0	0	2	0	3.00
Kuraray	0	0	0	0	0.00

Standard Lithium presently has a consensus price target of $3.95, suggesting a potential upside of 203.85%. Given Standard Lithium’s stronger consensus rating and higher probable upside, analysts clearly believe Standard Lithium is more favorable than Kuraray.

Insider and Institutional Ownership

16.8% of Standard Lithium shares are owned by institutional investors. 3.7% of Standard Lithium shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Kuraray beats Standard Lithium on 8 of the 15 factors compared between the two stocks.

About Standard Lithium

Standard Lithium Ltd. explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with area of approximately 150,000 acres located in southern Arkansas. The company was formerly known as Patriot Petroleum Corp. and changed its name to Standard Lithium Ltd. in December 2016. Standard Lithium Ltd. was incorporated in 1998 and is headquartered in Vancouver, Canada.

About Kuraray

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.