Analyzing Resonac (SHWDY) & Its Competitors

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

Valuation & Earnings

This table compares Resonac and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Resonac	$9.01 billion	$194.51 million	46.03
Resonac Competitors	$6.42 billion	$222.31 million	-3.59

Resonac has higher revenue, but lower earnings than its rivals. Resonac is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

47.5% of shares of all “Chemicals” companies are owned by institutional investors. 13.9% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Resonac has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Resonac’s rivals have a beta of 0.94, indicating that their average stock price is 6% less volatile than the S&P 500.

Dividends

Resonac pays an annual dividend of $0.27 per share and has a dividend yield of 0.3%. Resonac pays out 14.7% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 108.7% of their earnings in the form of a dividend.

Profitability

This table compares Resonac and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resonac	4.05%	7.54%	2.61%
Resonac Competitors	-61.58%	1.07%	-1.45%

Analyst Ratings

This is a summary of current ratings and price targets for Resonac and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resonac	0	0	0	1	4.00
Resonac Competitors	3241	12196	14110	516	2.40

As a group, “Chemicals” companies have a potential upside of 4.95%. Given Resonac’s rivals higher possible upside, analysts clearly believe Resonac has less favorable growth aspects than its rivals.

Summary

Resonac beats its rivals on 8 of the 15 factors compared.

Resonac Company Profile

Resonac Holdings Corporation operates as a chemical company in Japan, China, rest of Asia, and internationally. It operates through Semiconductor and Electronic Materials, Mobility, Innovation Enabling Materials, and Chemicals segments. The company offers gases and solvents, abatement systems and surface treatments, CMP slurries, and anti-charging materials; semiconductor-related materials, display and sensor-related materials, and films; base and photosensitive materials for PWBs; hard disks, SiCs, and optical semiconductors for use as electronic device components; and molded plastics/sheet-formed, powder metal, and aluminum products for automotives. It also provides lithium-ion batteries and mechanical carbon; ceramics, resins, cosmetic ingredients/medicinal additives, monomers, adhesives, tapes, and chromatography products; and elastomers. In addition, the company offers polyimides; HD media; friction materials; aluminum gravity casting products; packaging/containers for food, medicine, and electronics; electrical insulating epoxy resin molded products; zipper bags and tapes; titanium oxide and alumina; and elastic polishing grindstone. Further, it provides polypropylene and polyethylene; liquefied carbon dioxide, dry ice, and gas-related equipment; liquefied oxygen, nitrogen, and argon; molecular sieve; graphite electrodes; plasters, fireproofing pipes, and wall sidings; cement and moisture removal sheets; industrial materials; and FRP, coated sand, and separating mediums. Additionally, the company engages in the contract development and manufacturing of regenerative medicines; leasing of personal computers and other business equipment; outsourcing of salary, welfare, and finance-related business; and synthesis, analysis, and SDS preparation services. The company was formerly known as Showa Denko K.K. and changed its name to Resonac Holdings Corporation in January 2023. Resonac Holdings Corporation was incorporated in 1939 and is headquartered in Tokyo, Japan.