Sumitomo Chemcl (OTCMKTS:SOMMY) vs. Huntsman (NYSE:HUN) Head to Head Contrast

Huntsman (NYSE:HUN) and Sumitomo Chemcl (OTCMKTS:SOMMY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Institutional and Insider Ownership

84.8% of Huntsman shares are held by institutional investors. 6.2% of Huntsman shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Huntsman and Sumitomo Chemcl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntsman	4	7	2	0	1.85
Sumitomo Chemcl	0	1	0	0	2.00

Huntsman currently has a consensus price target of $10.23, suggesting a potential downside of 3.73%. Given Huntsman’s higher possible upside, equities analysts plainly believe Huntsman is more favorable than Sumitomo Chemcl.

Risk & Volatility

Huntsman has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Sumitomo Chemcl has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Huntsman and Sumitomo Chemcl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntsman	-5.69%	-3.26%	-1.41%
Sumitomo Chemcl	3.43%	7.54%	2.43%

Earnings & Valuation

This table compares Huntsman and Sumitomo Chemcl”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntsman	$6.04 billion	0.31	-$189.00 million	($1.90)	-5.59
Sumitomo Chemcl	$17.12 billion	0.28	$254.70 million	$1.73	8.50

Sumitomo Chemcl has higher revenue and earnings than Huntsman. Huntsman 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

Huntsman pays an annual dividend of $1.00 per share and has a dividend yield of 9.4%. Sumitomo Chemcl pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. Huntsman pays out -52.6% of its earnings in the form of a dividend. Sumitomo Chemcl pays out 15.0% 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. Huntsman has increased its dividend for 4 consecutive years. Huntsman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Huntsman beats Sumitomo Chemcl on 9 of the 17 factors compared between the two stocks.

About Huntsman

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

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.