Financial Analysis: FMC (NYSE:FMC) & JSR (OTCMKTS:JSCPF)

JSR (OTCMKTS:JSCPF) and FMC (NYSE:FMC) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares JSR and FMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSR	N/A	N/A	N/A
FMC	-84.83%	11.35%	2.65%

Valuation & Earnings

This table compares JSR and FMC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSR	N/A	N/A	N/A	$106.06	0.27
FMC	$3.47 billion	0.38	-$2.24 billion	($22.00)	-0.47

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

Analyst Ratings

This is a summary of recent recommendations and price targets for JSR and FMC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSR	0	0	0	0	0.00
FMC	3	8	3	0	2.00

FMC has a consensus price target of $14.25, suggesting a potential upside of 36.76%. Given FMC’s stronger consensus rating and higher possible upside, analysts plainly believe FMC is more favorable than JSR.

Insider and Institutional Ownership

18.6% of JSR shares are held by institutional investors. Comparatively, 91.9% of FMC shares are held by institutional investors. 0.8% of FMC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

JSR pays an annual dividend of $31.06 per share and has a dividend yield of 110.3%. FMC pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. JSR pays out 29.3% of its earnings in the form of a dividend. FMC pays out -1.5% 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.

Summary

FMC beats JSR on 9 of the 13 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 FMC

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.