Head to Head Survey: SUMITOMO CHEMCL (OTCMKTS:SOMMY) versus Tokuyama (OTCMKTS:TKYMY)

SUMITOMO CHEMCL (OTCMKTS:SOMMY) and Tokuyama (OTCMKTS:TKYMY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

This table compares SUMITOMO CHEMCL and Tokuyama”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SUMITOMO CHEMCL	$17.12 billion	0.29	$254.70 million	$0.17	87.53
Tokuyama	$2.25 billion	0.76	$154.35 million	$0.97	12.19

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

Dividends

SUMITOMO CHEMCL pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Tokuyama pays an annual dividend of $0.23 per share and has a dividend yield of 1.9%. SUMITOMO CHEMCL pays out 164.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tokuyama pays out 23.7% of its earnings in the form of a dividend. Tokuyama is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares SUMITOMO CHEMCL and Tokuyama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SUMITOMO CHEMCL	0.35%	0.80%	0.25%
Tokuyama	7.00%	9.68%	5.56%

Analyst Ratings

This is a summary of current ratings and target prices for SUMITOMO CHEMCL and Tokuyama, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SUMITOMO CHEMCL	0	1	0	0	2.00
Tokuyama	0	0	0	0	0.00

Volatility & Risk

SUMITOMO CHEMCL has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Tokuyama has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Summary

Tokuyama beats SUMITOMO CHEMCL on 7 of the 12 factors compared between the two stocks.

About SUMITOMO CHEMCL

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.