Analyzing Sherwin-Williams (NYSE:SHW) & Symrise (OTCMKTS:SYIEY)

Sherwin-Williams (NYSE:SHW) and Symrise (OTCMKTS:SYIEY) are both large-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Sherwin-Williams and Symrise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sherwin-Williams	11.03%	66.91%	11.48%
Symrise	N/A	N/A	N/A

Institutional & Insider Ownership

77.7% of Sherwin-Williams shares are owned by institutional investors. 0.6% of Sherwin-Williams shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Sherwin-Williams pays an annual dividend of $3.16 per share and has a dividend yield of 0.9%. Symrise pays an annual dividend of $0.18 per share and has a dividend yield of 0.8%. Sherwin-Williams pays out 31.3% of its earnings in the form of a dividend. Sherwin-Williams has raised its dividend for 48 consecutive years. Sherwin-Williams is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sherwin-Williams and Symrise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sherwin-Williams	0	4	11	1	2.81
Symrise	0	1	1	2	3.25

Sherwin-Williams currently has a consensus price target of $387.13, suggesting a potential upside of 16.03%. Given Sherwin-Williams’ higher probable upside, analysts clearly believe Sherwin-Williams is more favorable than Symrise.

Valuation and Earnings

This table compares Sherwin-Williams and Symrise”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sherwin-Williams	$23.08 billion	3.60	$2.68 billion	$10.08	33.10
Symrise	$5.41 billion	2.46	$517.49 million	N/A	N/A

Sherwin-Williams has higher revenue and earnings than Symrise.

Volatility and Risk

Sherwin-Williams has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Symrise has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Sherwin-Williams beats Symrise on 13 of the 16 factors compared between the two stocks.

About Sherwin-Williams

The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.

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.