Financial Survey: Celanese (NYSE:CE) vs. Kuraray (OTCMKTS:KURRY)

Kuraray (OTCMKTS:KURRY) and Celanese (NYSE:CE) are both mid-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Insider and Institutional Ownership

98.9% of Celanese shares are held by institutional investors. 0.3% of Celanese shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Kuraray has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Celanese has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Kuraray and Celanese’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuraray	0.92%	5.33%	3.07%
Celanese	-12.04%	13.04%	2.69%

Dividends

Kuraray pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Celanese pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Kuraray pays out 128.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Celanese pays out -1.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Kuraray and Celanese”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuraray	$5.41 billion	0.65	$50.04 million	$0.53	65.45
Celanese	$9.71 billion	0.51	-$1.17 billion	($10.69)	-4.20

Kuraray has higher earnings, but lower revenue than Celanese. Celanese is trading at a lower price-to-earnings ratio than Kuraray, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kuraray and Celanese, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuraray	1	0	0	0	1.00
Celanese	1	7	9	0	2.47

Celanese has a consensus target price of $63.71, indicating a potential upside of 41.74%. Given Celanese’s stronger consensus rating and higher probable upside, analysts plainly believe Celanese is more favorable than Kuraray.

Summary

Celanese beats Kuraray on 9 of the 16 factors compared between the two stocks.

About Kuraray

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

About Celanese

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.