Head-To-Head Comparison: Toray Industries (OTCMKTS:TRYIY) and Mativ (NYSE:MATV)

Mativ (NYSE:MATV) and Toray Industries (OTCMKTS:TRYIY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Mativ and Toray Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mativ	-22.03%	7.06%	1.73%
Toray Industries	2.38%	3.26%	1.78%

Risk & Volatility

Mativ has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Toray Industries has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mativ	1	1	1	0	2.00
Toray Industries	0	2	0	0	2.00

Mativ presently has a consensus target price of $10.00, suggesting a potential downside of 20.06%. Given Mativ’s higher possible upside, research analysts clearly believe Mativ is more favorable than Toray Industries.

Dividends

Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 3.2%. Toray Industries pays an annual dividend of $0.15 per share and has a dividend yield of 1.2%. Mativ pays out -5.0% of its earnings in the form of a dividend. Toray Industries pays out 28.8% 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. Mativ has raised its dividend for 1 consecutive years. Mativ is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

95.0% of Mativ shares are held by institutional investors. 2.0% of Mativ shares are held by 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.

Valuation and Earnings

This table compares Mativ and Toray Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mativ	$1.98 billion	0.35	-$48.70 million	($8.03)	-1.56
Toray Industries	$16.83 billion	0.58	$514.21 million	$0.52	25.01

Toray Industries has higher revenue and earnings than Mativ. Mativ is trading at a lower price-to-earnings ratio than Toray Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Mativ beats Toray Industries on 9 of the 16 factors compared between the two stocks.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

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.