Critical Survey: Standard Lithium (NYSE:SLI) and Resonac (OTCMKTS:SHWDY)

Resonac (OTCMKTS:SHWDY) and Standard Lithium (NYSE:SLI) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

16.8% of Standard Lithium shares are held by institutional investors. 3.7% of Standard Lithium shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Resonac and Standard Lithium”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resonac	$9.09 billion	0.53	-$133.65 million	$1.27	20.68
Standard Lithium	N/A	N/A	$108.82 million	$0.59	2.86

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

Profitability

This table compares Resonac and Standard Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resonac	2.46%	7.52%	2.23%
Standard Lithium	N/A	-11.52%	-10.25%

Analyst Ratings

This is a summary of current recommendations and price targets for Resonac and Standard Lithium, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resonac	0	0	0	1	4.00
Standard Lithium	0	0	2	0	3.00

Standard Lithium has a consensus target price of $3.95, indicating a potential upside of 134.42%. Given Standard Lithium’s higher possible upside, analysts plainly believe Standard Lithium is more favorable than Resonac.

Dividends

Resonac pays an annual dividend of $0.31 per share and has a dividend yield of 1.2%. Standard Lithium pays an annual dividend of $2.00 per share and has a dividend yield of 118.7%. Resonac pays out 24.4% of its earnings in the form of a dividend. Standard Lithium pays out 339.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Resonac has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Standard Lithium has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Summary

Resonac beats Standard Lithium on 9 of the 16 factors compared between the two stocks.

About Resonac

Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.

About Standard Lithium

Standard Lithium Ltd. explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with area of approximately 150,000 acres located in southern Arkansas. The company was formerly known as Patriot Petroleum Corp. and changed its name to Standard Lithium Ltd. in December 2016. Standard Lithium Ltd. was incorporated in 1998 and is headquartered in Vancouver, Canada.