Critical Comparison: Arkema (OTCMKTS:ARKAY) versus Tosoh (OTCMKTS:TOSCF)

Arkema (OTCMKTS:ARKAY) and Tosoh (OTCMKTS:TOSCF) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Profitability

This table compares Arkema and Tosoh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arkema 4.69% 8.47% 4.23%
Tosoh N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings for Arkema and Tosoh, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arkema 1 7 5 0 2.31
Tosoh 0 0 0 0 N/A

Earnings and Valuation

This table compares Arkema and Tosoh’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arkema $9.01 billion 1.11 $379.24 million $5.83 22.27
Tosoh $7.22 billion 0.81 $510.44 million $1.57 11.50

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

Insider and Institutional Ownership

0.3% of Arkema shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Arkema has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Tosoh has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.

Summary

Arkema beats Tosoh on 10 of the 11 factors compared between the two stocks.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. It operates in three segments: Adhesive Solutions, Advanced Materials, and Coating Solutions. Its products include acrylics, coating resins, electroactive polymers, fluorochemicals, fluoropolymers, functional polyolefins, hydrazine hydrate, hydrogen peroxide, molecular sieves, organic peroxide, oxygenated solvents, polyetherketoneketone, plastic additives, polymethyl methacrylate resins and sheets, rheology additives, solutions for glass coating, specialty adhesives, specialty polyamides, surfactants and additives, technical fluids, and thiochemicals. The company also offers UV, LED, EB curable resins, and specialty acrylates. It offers adhesive solutions used in building activities for businesses and individuals, including sealants, tile and flooring adhesives, and waterproofing systems, as well as in automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets; advanced materials used in the automotive and transportation, oil and gas, renewable energies, consumer goods, electronics, construction, coatings, animal nutrition, and water treatment; coating solutions for decorative paints, industrial coatings, adhesives, paper, superabsorbents, water treatment, oil and gas extraction, 3D printing, and electronics applications; and industrial intermediate chemicals for the construction, production of refrigeration and air conditioning, automotive, and water treatment applications. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

About Tosoh

Tosoh Corporation manufactures and sells basic chemicals, petrochemicals, specialty products, and fine chemicals worldwide. It operates through four segments: Petrochemical, Chlor-Alkali, Specialty, and Engineering. The company provides materials, including battery, fabricated quartzware, silica glass, thin film depositions, zeolites for catalysts and molecular sieves, zirconia injection mold components and compounds, zirconia grinding and dispersion media, and zirconia fine beads and powders. It also offers chromatographic columns, and media and diagnostic systems; clinical diagnostic systems; Portland cement and blast-furnace slag cement; and caustic soda, vinyl chloride monomer, calcium hypochlorite, and sodium bicarbonate. In addition, the company provides ethylene, propylene, C4 fraction, tertiary butyl alcohol, cumene, and aromatic compounds; and ethyleneamines, bromine, hydrobromic acids, flame retardants, non-aqueous solvents, chelating agents, ethylene dichloride, and sodium styrenesulfonate. Further, it offers polymers, such as ethylene vinyl-acetate copolymers, adhesive polymers, low and high-density polyethylene products, synthetic rubbers, functional polymers, and polyvinyl chloride pastes; and polyurethanes (PU), including methylene diphenyl diisocyanate, toluene diisocyanate, hexamethylene diisocyanate, adhesives, coating resins, elastomers, polyisocyanates for PU paints, and polyols. Additionally, it manufactures and sells water treatment systems; and engages in the construction and repair businesses. It also offers logistics, analytic, personnel management, and information technology services.

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