Head to Head Contrast: Neo Performance Materials (OTCMKTS:NOPMF) versus Symrise (OTCMKTS:SYIEF)

Neo Performance Materials (OTCMKTS:NOPMF) and Symrise (OTCMKTS:SYIEF) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Neo Performance Materials and Symrise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neo Performance Materials	-2.09%	5.05%	3.17%
Symrise	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Neo Performance Materials and Symrise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neo Performance Materials	0	1	1	0	2.50
Symrise	0	0	0	0	0.00

Dividends

Neo Performance Materials pays an annual dividend of $0.29 per share and has a dividend yield of 1.3%. Symrise pays an annual dividend of $0.53 per share and has a dividend yield of 0.6%. Neo Performance Materials pays out -111.5% of its earnings in the form of a dividend. Symrise pays out 33.6% 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. Neo Performance Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Neo Performance Materials and Symrise”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neo Performance Materials	$478.79 million	1.95	-$9.98 million	($0.26)	-85.65
Symrise	N/A	N/A	N/A	$1.58	55.83

Symrise has lower revenue, but higher earnings than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than Symrise, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

53.1% of Symrise shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Neo Performance Materials beats Symrise on 7 of the 11 factors compared between the two stocks.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

About Symrise

Symrise AG supplies fragrances, flavorings, cosmetic active ingredients and raw materials, and functional ingredients in Europe, Africa, the Middle East, North America, the Asia Pacific, and Latin America. It operates through two segments, Taste, Nutrition & Health; and Scent & Care. The Taste, Nutrition & Health segment provides functional ingredients and product solutions used in the production of food and beverages; savory flavors; natural and sustainable ingredients for food and beverage manufacturers, baby food, and dietary supplements; product solutions and services for pet food manufacturers; sustainable ingredients and services for fish feed manufacturers to develop solutions for fish and shrimp farms; and probiotics for food supplements and functional foods. The Scent & Care segment develops, produces, and sells fragrance ingredients and compositions, aroma molecules, cosmetic ingredients, and mint flavors, as well as specific application processes for such substances. This segment’s products are used by manufacturers of perfumes, personal care and cosmetic products, cleaning products, detergents, air fresheners, and oral care products. Symrise AG was founded in 1874 and is headquartered in Holzminden, Germany.