Shin-Etsu Chemical (OTCMKTS:SHECY – Get Free Report) and Compass Minerals International (NYSE:CMP – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Volatility & Risk
Shin-Etsu Chemical has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Earnings and Valuation
This table compares Shin-Etsu Chemical and Compass Minerals International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shin-Etsu Chemical | $16.82 billion | 3.76 | $3.56 billion | $0.88 | 18.11 |
| Compass Minerals International | $1.12 billion | 0.72 | -$206.10 million | ($2.92) | -6.65 |
Shin-Etsu Chemical has higher revenue and earnings than Compass Minerals International. Compass Minerals International 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.
Institutional & Insider Ownership
0.0% of Shin-Etsu Chemical shares are held by institutional investors. Comparatively, 99.8% of Compass Minerals International shares are held by institutional investors. 1.5% of Compass Minerals International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Shin-Etsu Chemical and Compass Minerals International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shin-Etsu Chemical | 1 | 0 | 0 | 0 | 1.00 |
| Compass Minerals International | 1 | 2 | 1 | 0 | 2.00 |
Compass Minerals International has a consensus price target of $20.00, suggesting a potential upside of 3.04%. Given Compass Minerals International’s stronger consensus rating and higher probable upside, analysts plainly believe Compass Minerals International is more favorable than Shin-Etsu Chemical.
Profitability
This table compares Shin-Etsu Chemical and Compass Minerals International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shin-Etsu Chemical | 19.94% | 10.90% | 9.31% |
| Compass Minerals International | -9.87% | -16.70% | -2.77% |
Summary
Shin-Etsu Chemical beats Compass Minerals International on 9 of the 14 factors compared between the two stocks.
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.
About Compass Minerals International
Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.
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