Reviewing Neo Performance Materials (OTCMKTS:NOPMF) and Kansai Paint (OTCMKTS:KSANF)

Neo Performance Materials (OTCMKTS:NOPMF) and Kansai Paint (OTCMKTS:KSANF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

22.0% of Kansai Paint shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Neo Performance Materials and Kansai Paint”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neo Performance Materials	$475.83 million	1.40	-$12.95 million	($0.17)	-94.47
Kansai Paint	N/A	N/A	N/A	$71.19	0.25

Kansai Paint has lower revenue, but higher earnings than Neo Performance Materials. Neo Performance Materials is trading at a lower price-to-earnings ratio than Kansai Paint, indicating that it is currently the more affordable of the two stocks.

Dividends

Neo Performance Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Kansai Paint pays an annual dividend of $12.35 per share and has a dividend yield of 70.6%. Neo Performance Materials pays out -164.7% of its earnings in the form of a dividend. Kansai Paint pays out 17.3% 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Neo Performance Materials and Kansai Paint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neo Performance Materials	0	1	1	0	2.50
Kansai Paint	0	0	0	0	0.00

Profitability

This table compares Neo Performance Materials and Kansai Paint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neo Performance Materials	-1.30%	3.71%	2.32%
Kansai Paint	N/A	N/A	N/A

Summary

Neo Performance Materials beats Kansai Paint on 6 of the 11 factors compared between the two stocks.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

About Kansai Paint

Kansai Paint Co., Ltd., together with its subsidiaries, manufactures and sells paints and coatings in Japan, India, Asia, Africa, Europe, and internationally. The company offers decorative coatings for protecting exterior and interior of buildings; automotive refinish coatings for dents and scrapes; and industrial coatings that are used in agricultural machinery, special-purpose vehicles, exterior building materials, metal products, beverage cans, and precoated metals used in metallic building materials and home appliances. It also offers marine coatings; automotive coatings for vehicle's conditions and aesthetics preservation, including film coating materials; and protective coatings for bridges, power equipment, industrial plants, and steel structures, as well as offers fire-resistant coatings. In addition, the company provides coatings solutions through electronic materials coating design technologies; and develops hydrogel fluid carrier beads that are used in various types of wastewater treatment. Further, it designs, manufactures, and sells coating equipment; controls and undertakes painting works; and designs color schemes. Kansai Paint Co., Ltd. was incorporated in 1918 and is headquartered in Osaka, Japan.