Head to Head Comparison: DuPont de Nemours (NYSE:DD) and Brenntag (OTCMKTS:BNTGY)

Brenntag (OTCMKTS:BNTGY) and DuPont de Nemours (NYSE:DD) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Dividends

Brenntag pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. DuPont de Nemours pays an annual dividend of $1.64 per share and has a dividend yield of 2.1%. Brenntag pays out 43.8% of its earnings in the form of a dividend. DuPont de Nemours pays out -348.9% 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 Ratings

This is a summary of current recommendations and price targets for Brenntag and DuPont de Nemours, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brenntag	1	5	0	0	1.83
DuPont de Nemours	0	4	9	0	2.69

DuPont de Nemours has a consensus target price of $88.33, suggesting a potential upside of 11.89%. Given DuPont de Nemours’ stronger consensus rating and higher possible upside, analysts plainly believe DuPont de Nemours is more favorable than Brenntag.

Insider & Institutional Ownership

74.0% of DuPont de Nemours shares are held by institutional investors. 0.6% of DuPont de Nemours shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Brenntag and DuPont de Nemours’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brenntag	2.62%	9.19%	3.69%
DuPont de Nemours	-1.54%	7.85%	5.10%

Volatility and Risk

Brenntag has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brenntag and DuPont de Nemours”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brenntag	$17.57 billion	0.50	$580.22 million	$0.64	19.06
DuPont de Nemours	$12.39 billion	2.67	$703.00 million	($0.47)	-167.98

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

Summary

DuPont de Nemours beats Brenntag on 10 of the 16 factors compared between the two stocks.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.

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.