Head to Head Review: Shin-Etsu Chemical (SHECY) & Its Competitors

Shin-Etsu Chemical (OTCMKTS:SHECY) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Shin-Etsu Chemical to similar companies based on the strength of its risk, valuation, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

0.0% of Shin-Etsu Chemical shares are owned by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are owned by institutional investors. 13.7% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Shin-Etsu Chemical and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shin-Etsu Chemical	18.57%	10.90%	8.97%
Shin-Etsu Chemical Competitors	-59.14%	-0.41%	-1.37%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Shin-Etsu Chemical and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shin-Etsu Chemical	0	1	0	0	2.00
Shin-Etsu Chemical Competitors	3248	12212	14131	519	2.40

As a group, “Chemicals” companies have a potential upside of 8.90%. Given Shin-Etsu Chemical’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Shin-Etsu Chemical has less favorable growth aspects than its competitors.

Volatility & Risk

Shin-Etsu Chemical has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Shin-Etsu Chemical’s competitors have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Dividends

Shin-Etsu Chemical pays an annual dividend of $0.19 per share and has a dividend yield of 1.1%. Shin-Etsu Chemical pays out 22.1% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Shin-Etsu Chemical and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shin-Etsu Chemical	$17.10 billion	$3.15 billion	19.70
Shin-Etsu Chemical Competitors	$6.40 billion	$222.31 million	6.28

Shin-Etsu Chemical has higher revenue and earnings than its competitors. Shin-Etsu Chemical is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Shin-Etsu Chemical beats its competitors on 8 of the 15 factors compared.

About Shin-Etsu Chemical

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.