Contrasting PPG Industries (NYSE:PPG) and JSR (OTCMKTS:JSCPY)

JSR (OTCMKTS:JSCPY) and PPG Industries (NYSE:PPG) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Insider and Institutional Ownership

81.9% of PPG Industries shares are owned by institutional investors. 0.3% of PPG Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

JSR has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, PPG Industries has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares JSR and PPG Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSR	-1.38%	-1.42%	-0.73%
PPG Industries	9.57%	21.07%	7.80%

Dividends

JSR pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. PPG Industries pays an annual dividend of $2.84 per share and has a dividend yield of 2.4%. JSR pays out -78.9% of its earnings in the form of a dividend. PPG Industries pays out 40.7% 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. PPG Industries has raised its dividend for 54 consecutive years. PPG Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings for JSR and PPG Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSR	0	0	0	0	0.00
PPG Industries	0	10	7	0	2.41

PPG Industries has a consensus price target of $126.00, indicating a potential upside of 8.26%. Given PPG Industries’ stronger consensus rating and higher possible upside, analysts plainly believe PPG Industries is more favorable than JSR.

Earnings and Valuation

This table compares JSR and PPG Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSR	$2.80 billion	1.88	-$36.66 million	($0.19)	-132.95
PPG Industries	$15.88 billion	1.63	$1.58 billion	$6.98	16.67

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

Summary

PPG Industries beats JSR on 15 of the 17 factors compared between the two stocks.

About JSR

JSR Corporation engages in the plastics, digital solutions, and life sciences businesses in Japan and internationally. Its Digital Solutions Business provides lithography, photoresists, multi layered, packaging, cleaning, CMP materials, etc.; colour liquid crystal display, organic electroluminescence display materials, etc.; and heat-resistant transparent resin, functional films, and stereolithography, etc. The company's Life Sciences Business offers services to support drug development, vitro reagents for diagnostics, research and raw materials for regent, bioprocess materials, etc. Its Plastics Business provides synthetic resins, including ABS, AES, AS, and ASA resins. The company's Other Business offers acrylic emulsion, water-based emulsion, and stain resistance. JSR Corporation was incorporated in 1948 and is headquartered in Tokyo, Japan. As of April 16, 2024, JSR Corporation operates as a subsidiary of JICC-02 Co., Ltd..

About PPG Industries

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.