Toray Industries (OTCMKTS:TRYIY) and Croda International (OTCMKTS:COIHY) Critical Review

Toray Industries (OTCMKTS:TRYIY) and Croda International (OTCMKTS:COIHY) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares Toray Industries and Croda International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toray Industries	$16.83 billion	0.59	$514.21 million	$0.58	21.26
Croda International	$2.08 billion	2.68	$202.55 million	N/A	N/A

Toray Industries has higher revenue and earnings than Croda International.

Dividends

Toray Industries pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Croda International pays an annual dividend of $0.51 per share and has a dividend yield of 2.6%. Toray Industries pays out 29.3% of its earnings in the form of a dividend.

Profitability

This table compares Toray Industries and Croda International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toray Industries	2.72%	3.76%	2.06%
Croda International	N/A	N/A	N/A

Risk & Volatility

Toray Industries has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Croda International has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Toray Industries and Croda International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toray Industries	0	2	0	0	2.00
Croda International	2	0	0	2	2.50

Insider and Institutional Ownership

0.1% of Croda International shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Croda International beats Toray Industries on 7 of the 12 factors compared between the two stocks.

About Toray Industries

Toray Industries, Inc., together with its subsidiaries, manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products in Japan, China, North America, Europe, and internationally. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-fine fibers; and apparel products. It also provides nylon, ABS, PBT, PPS, and other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and other plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; and materials for housing, building, and civil engineering applications. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.