DuPont de Nemours (NYSE:DD) and Shin-Etsu Chemical (OTCMKTS:SHECY) Head to Head Review

DuPont de Nemours (NYSE:DD) and Shin-Etsu Chemical (OTCMKTS:SHECY) are both large-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares DuPont de Nemours and Shin-Etsu Chemical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DuPont de Nemours	-1.54%	7.85%	5.10%
Shin-Etsu Chemical	19.94%	10.77%	9.30%

Institutional and Insider Ownership

74.0% of DuPont de Nemours shares are owned by institutional investors. Comparatively, 0.0% of Shin-Etsu Chemical shares are owned by institutional investors. 0.6% of DuPont de Nemours shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares DuPont de Nemours and Shin-Etsu Chemical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DuPont de Nemours	$12.39 billion	2.40	$703.00 million	($0.47)	-150.75
Shin-Etsu Chemical	$16.82 billion	3.54	$3.52 billion	$0.88	17.02

Shin-Etsu Chemical has higher revenue and earnings than DuPont de Nemours. DuPont de Nemours is trading at a lower price-to-earnings ratio than Shin-Etsu Chemical, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DuPont de Nemours has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Shin-Etsu Chemical has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Dividends

DuPont de Nemours pays an annual dividend of $1.64 per share and has a dividend yield of 2.3%. Shin-Etsu Chemical pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. DuPont de Nemours pays out -348.9% of its earnings in the form of a dividend. Shin-Etsu Chemical pays out 28.4% 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. DuPont de Nemours is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for DuPont de Nemours and Shin-Etsu Chemical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DuPont de Nemours	0	3	9	0	2.75
Shin-Etsu Chemical	0	0	0	0	0.00

DuPont de Nemours currently has a consensus price target of $87.9167, indicating a potential upside of 24.08%. Given DuPont de Nemours’ stronger consensus rating and higher possible upside, equities analysts plainly believe DuPont de Nemours is more favorable than Shin-Etsu Chemical.

Summary

Shin-Etsu Chemical beats DuPont de Nemours on 9 of the 16 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.

About Shin-Etsu Chemical

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.