Analyzing Sumitomo Chemcl (SOMMY) and The Competition

Profitability

This table compares Sumitomo Chemcl and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Chemcl	1.44%	3.31%	1.01%
Sumitomo Chemcl Competitors	-39.80%	2.88%	0.68%

Earnings & Valuation

This table compares Sumitomo Chemcl and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sumitomo Chemcl	$17.12 billion	$254.70 million	16.51
Sumitomo Chemcl Competitors	$10.60 billion	$484.74 million	6.95

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

Dividends

Sumitomo Chemcl pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Sumitomo Chemcl pays out 37.3% of its earnings in the form of a dividend. As a group, “CHEM – DIVERSIFD” companies pay a dividend yield of 3.1% and pay out 91.8% of their earnings in the form of a dividend.

Volatility & Risk

Sumitomo Chemcl has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Sumitomo Chemcl’s peers have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

62.5% of shares of all “CHEM – DIVERSIFD” companies are held by institutional investors. 4.5% of shares of all “CHEM – DIVERSIFD” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Sumitomo Chemcl beats its peers on 6 of the 11 factors compared.

About Sumitomo Chemcl

Sumitomo Chemical Company, Limited engages in Chemicals & Plastics, energy and functional materials, IT-related chemicals, health and crop sciences, pharmaceuticals, and other businesses worldwide. Its Essential Chemicals & Plastics segment offers synthetic resins, such as polyethylene, polypropylene, and polymethyl methacrylate resins; raw materials for synthetic fibers; and various industrial chemicals. The company's Energy & Functional Materials segment provides alumina and aluminum products used for energy products; resorcinol for tires, wood adhesives, flame retardants, and ultraviolet ray absorbants; polymer additives and rubber chemicals; synthetic rubber for tires, shoes, construction materials, and other applications; and engineering plastics and lithium-ion secondary battery materials for use in electronic components and next-generation vehicles. Its IT-Related Chemicals segment provides polarizing films, touch screen sensor panels, and color resists and polymer OLED for LC and OLED displays; photoresists and high-purity chemicals for the semiconductor manufacturing process; and compound semiconductor materials for antenna switches and other components of communication terminal equipment. The company's Health & Crop Sciences segment offers crop protection chemicals, fertilizers, feed additives, and household insecticides; active pharmaceutical ingredients and intermediates; and products to control infectious diseases. Its Pharmaceuticals segment provides prescription and diagnostic pharmaceuticals. The company's Others segment supplies electric power and steam; designs, constructs, and supervises chemical plants; provides transportation and warehousing services; and conducts physical property and environmental analysis. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.