Contrasting Sumitomo Chemcl (OTCMKTS:SOMMY) and Koninklijke DSM (OTCMKTS:RDSMY)

Koninklijke DSM (OTCMKTS:RDSMY) and Sumitomo Chemcl (OTCMKTS:SOMMY) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Insider and Institutional Ownership

0.2% of Koninklijke DSM shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Koninklijke DSM pays an annual dividend of $0.37 per share and has a dividend yield of 1.1%. Sumitomo Chemcl pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. Sumitomo Chemcl pays out 13.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Koninklijke DSM and Sumitomo Chemcl”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke DSM	$10.89 billion	2.17	$1.98 billion	N/A	N/A
Sumitomo Chemcl	$15.47 billion	0.39	$402.25 million	$2.11	8.53

Koninklijke DSM has higher earnings, but lower revenue than Sumitomo Chemcl.

Risk and Volatility

Koninklijke DSM has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Sumitomo Chemcl has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Koninklijke DSM and Sumitomo Chemcl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke DSM	N/A	N/A	N/A
Sumitomo Chemcl	4.52%	8.56%	3.07%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Koninklijke DSM and Sumitomo Chemcl, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke DSM	0	0	0	0	0.00
Sumitomo Chemcl	0	1	0	0	2.00

Summary

Sumitomo Chemcl beats Koninklijke DSM on 6 of the 11 factors compared between the two stocks.

About Koninklijke DSM

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally. It operates through Nutrition, Materials, and Innovation Center segments. The Nutrition segment offers animal nutrition and health products, including vitamins, premixes, carotenoids, enzymes, microbes, and eubiotics; human nutrition and health products comprising vitamins, nutritional lipids, minerals, carotenoids, nutraceuticals, digestive enzymes, probiotics, and prebiotics, as well as active pharmaceutical ingredients; premix, market-ready solutions, and personalized nutrition; human milk oligosaccharides; and skin and sun care, hair care, and aroma ingredients; omega-3 fatty acids; and specialty food enzymes, cultures, bio-preservation, texturizing hydrocolloids, sugar reduction, and savory taste solutions. The Materials segment provides specialty plastics used in components for the electrical and electronics, automotive, flexible food-packaging, and consumer goods industries; and Dyneema, a fiber solution for use in personal protection, workwear, sports apparel, outdoor equipment, ropes and slings, synthetic chains, and nets for the aquaculture, and renewable energy sectors. The Innovation Center segment offers biomedical materials, and medical device and material manufacturing technologies in the areas of cardiovascular, continence care, dental, diabetes management, gynecology, neurology, ophthalmology, orthopedic, peripheral vascular, plastic and reconstructive surgery, and wound management. It also commercializes yeast technology yeast for ethanol production. The company was founded in 1902 and is headquartered in Heerlen, the Netherlands.

About Sumitomo Chemcl

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.