Financial Comparison: Novozymes A/S (OTCMKTS:NVZMY) & Solstice Advanced Mat (NASDAQ:SOLS)

Novozymes A/S (OTCMKTS:NVZMY) and Solstice Advanced Mat (NASDAQ:SOLS) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

0.0% of Novozymes A/S shares are held by institutional investors. 0.1% of Solstice Advanced Mat shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Novozymes A/S and Solstice Advanced Mat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novozymes A/S	14.70%	6.54%	4.34%
Solstice Advanced Mat	5.13%	14.28%	4.82%

Valuation & Earnings

This table compares Novozymes A/S and Solstice Advanced Mat”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novozymes A/S	$4.70 billion	6.34	$660.28 million	$1.58	45.51
Solstice Advanced Mat	$3.89 billion	2.44	$237.00 million	$1.77	33.79

Novozymes A/S has higher revenue and earnings than Solstice Advanced Mat. Solstice Advanced Mat is trading at a lower price-to-earnings ratio than Novozymes A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Novozymes A/S and Solstice Advanced Mat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novozymes A/S	0	1	0	2	3.33
Solstice Advanced Mat	0	4	8	1	2.77

Solstice Advanced Mat has a consensus target price of $77.30, suggesting a potential upside of 29.26%. Given Solstice Advanced Mat’s higher probable upside, analysts plainly believe Solstice Advanced Mat is more favorable than Novozymes A/S.

Dividends

Novozymes A/S pays an annual dividend of $0.39 per share and has a dividend yield of 0.5%. Solstice Advanced Mat pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. Novozymes A/S pays out 24.7% of its earnings in the form of a dividend. Solstice Advanced Mat pays out 16.9% 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.

Summary

Novozymes A/S beats Solstice Advanced Mat on 9 of the 16 factors compared between the two stocks.

About Novozymes A/S

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Denmark, rest of Europe, North America, Asia Pacific, the Middle East, Africa, Latin America, and internationally. The company offers protein solutions for the food and beverage industry. It also offers industrial hygiene, drain openers, hard surface, medical cleaning, septic tanks, ware washing, and professional laundry services. In addition, the company provides dishwashing, softener, microbial and medical cleaning services. Further, it provides corn, cotton, forages, peanuts, pulses, soybeans, wheat, small grains, bioyield, and biocontrol solutions; warm water species, recirculating aquaculture system; animal health and nutrition solutions; fiber modification, bleach boosting, deposit control, and starch modification solutions. Additionally, the company provides carbon capture, leather and textiles solutions; enzyme solutions, including corn and wheat separation, liquefaction, saccharification, filtration, isomerization, maltose, and specialties solutions; warm water species and recirculating aquaculture system solutions; human health solutions, comprising brain, oral, protective and immune, and gastrointestinal health solutions; ethanol, biodiesel, renewable diesel, education, wastewater, and sewage sludge, and renewable diesel solutions; agriculture and industry, biogas food waste, food waste, biocatalysis, cell culture, diagnostics, enzyme, and biogas solutions. Furthermore, it provides lipases, proteases, oxidoreductases, and carbohydrases. Novozymes A/S was founded in 1925 and is based in Bagsvaerd, Denmark.

About Solstice Advanced Mat

Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.