Reviewing Mitsubishi Chemical Group (OTCMKTS:MTLHF) & Chemours (NYSE:CC)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Chemours and Mitsubishi Chemical Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemours	2	5	5	0	2.25
Mitsubishi Chemical Group	0	0	0	0	0.00

Chemours presently has a consensus price target of $20.10, indicating a potential upside of 27.15%. Given Chemours’ stronger consensus rating and higher possible upside, research analysts clearly believe Chemours is more favorable than Mitsubishi Chemical Group.

Institutional & Insider Ownership

76.3% of Chemours shares are held by institutional investors. Comparatively, 14.7% of Mitsubishi Chemical Group shares are held by institutional investors. 0.9% of Chemours shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Chemours pays an annual dividend of $0.35 per share and has a dividend yield of 2.2%. Mitsubishi Chemical Group pays an annual dividend of $9.56 per share and has a dividend yield of 152.6%. Chemours pays out -18.3% of its earnings in the form of a dividend. Mitsubishi Chemical Group pays out 36.8% 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.

Valuation and Earnings

This table compares Chemours and Mitsubishi Chemical Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemours	$5.81 billion	0.41	-$386.00 million	($1.91)	-8.28
Mitsubishi Chemical Group	N/A	N/A	N/A	$25.94	0.24

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

Profitability

This table compares Chemours and Mitsubishi Chemical Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemours	-5.00%	60.64%	1.48%
Mitsubishi Chemical Group	N/A	N/A	N/A

Summary

Chemours beats Mitsubishi Chemical Group on 10 of the 13 factors compared between the two stocks.

About Chemours

The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Titanium Technologies segment provides TiO2 pigment under the Ti-Pure brand for delivering whiteness, brightness, opacity, durability, efficiency, and protection in various of applications, such as architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride, laminate papers used for furniture and building materials, coated paper, and coated paperboard used for packaging. The Thermal & Specialized Solutions segment offers of refrigerants, thermal management solutions, propellants, foam blowing agents, and specialty solvents. The Advanced Performance Materials segment products portfolio includes various industrial resins, specialty products, membranes, and coatings for electronics, communications, transportation, wire and cable, energy, oil and gas, and medical, and other applications under the eflon, Viton, Krytox, and Nafion brands. The company sells its products through direct and indirect channels, as well as through a network of resellers and distributors. The Chemours Company was incorporated in 2014 and is headquartered in Wilmington, Delaware.

About Mitsubishi Chemical Group

Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. The company offers polyester films for various applications, including optical materials, for electronic displays; industrial materials for electronic components, automotive parts, and medical equipment; and packaging materials for food and other products. It also provides high-performance engineering plastics, as well as advanced solutions; industrial materials, such as MMA, petrochemicals, carbon products, and industrial gages; and pharma and regenerative medicines. In addition, the company offers engineering, transportation, and warehousing services. Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.