CVR Partners (NYSE:UAN) vs. Sumitomo Chemcl (OTCMKTS:SOMMY) Head-To-Head Review

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

Dividends

CVR Partners pays an annual dividend of $24.32 per share and has a dividend yield of 19.1%. Sumitomo Chemcl pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. CVR Partners pays out 160.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sumitomo Chemcl pays out 13.3% of its earnings in the form of a dividend. CVR Partners has increased its dividend for 1 consecutive years. CVR Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

CVR Partners has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Sumitomo Chemcl has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

43.8% of CVR Partners shares are held by institutional investors. 0.4% of CVR Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVR Partners	23.67%	51.56%	15.70%
Sumitomo Chemcl	4.52%	8.37%	3.07%

Earnings and Valuation

This table compares CVR Partners and Sumitomo Chemcl”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVR Partners	$606.04 million	2.22	$98.66 million	$15.16	8.40
Sumitomo Chemcl	$15.47 billion	0.40	$402.25 million	$2.11	8.78

Sumitomo Chemcl has higher revenue and earnings than CVR Partners. CVR Partners is trading at a lower price-to-earnings ratio than Sumitomo Chemcl, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for CVR Partners and Sumitomo Chemcl, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVR Partners	0	0	1	0	3.00
Sumitomo Chemcl	0	1	0	0	2.00

Summary

CVR Partners beats Sumitomo Chemcl on 11 of the 16 factors compared between the two stocks.

About CVR Partners

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP is a subsidiary of CVR Energy, Inc.

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.