Head to Head Analysis: Arkema (OTCMKTS:ARKAY) and MTN Group (OTCMKTS:MTNOY)

Arkema (OTCMKTS:ARKAY) and MTN Group (OTCMKTS:MTNOY) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Arkema and MTN Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arkema	4.40%	8.92%	4.76%
MTN Group	N/A	N/A	N/A

Dividends

Arkema pays an annual dividend of $3.10 per share and has a dividend yield of 3.0%. MTN Group pays an annual dividend of $0.12 per share and has a dividend yield of 2.7%. Arkema pays out 53.4% of its earnings in the form of a dividend.

Volatility and Risk

Arkema has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, MTN Group has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares Arkema and MTN Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arkema	$10.30 billion	0.74	$452.36 million	$5.80	17.54
MTN Group	$12.00 billion	N/A	$221.79 million	N/A	N/A

Arkema has higher earnings, but lower revenue than MTN Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Arkema and MTN Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arkema	0	0	1	0	3.00
MTN Group	0	0	0	0	N/A

Summary

Arkema beats MTN Group on 6 of the 9 factors compared between the two stocks.

About Arkema

Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. This segment also offers performance polymers, such as specialty polyamides, PVDF, polyimides, fluorospecialties, and polyetherketoneketone; and performance additives which includes molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide. The Advance Materials and Coating Solutions segment offers coating solutions, including comprising EU/US acrylics and coating resins; coating additives, such as sartomer photocure resins and coatex rheology additives. This segment also provides decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbent, water treatment and oil and gas extraction, and 3D printing and electronics industries. The Intermediates segment provides fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

About MTN Group

MTN Group Limited, together with its subsidiaries, provides mobile telecommunications services in South Africa, Nigeria, East Africa, West and Central Africa, and the Middle East and North Africa. The company offers data, voice and SMS, digital and fintech, interconnect, and roaming services, as well as sells mobile devices. It also provides network as a service, including subsea cables that offers international connectivity services; terrestrial and metro fiber networks; data centers and cable landing stations; and FTTx, towers, and radio access networks. The company also offers digital financial services, such as access payments, e-commerce, insurance, and lending and remittance services; enterprise services comprising manage networks, unified and cloud communication, security as a service, and Internet of Things; and API products and services for telecommunications, health, government, financial services, entertainment, and other sectors. MTN Group Limited was incorporated in 1994 and is based in Johannesburg, South Africa.